environmental assessment of the mozambique national...

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Environmental Assessmentof the

Mozambique National Water DevelopmentProject

Prepared by

NORAGRICCentre for International Environment and Development Studies

Agricultural University of NorwayP.O. Box 5001

N-1432 AsNorway

for

The World BankWashington, DC, USA

and

Direcgao Nacional de AguasMaputo, Mogambique

July 1996(Second Edition August 1997)

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CONTENTS

List of Figures ivAbbreviations and Acronyms v

Executive Summary vii

1. Introduction 11.1 Overview of the Project 11.2 Scope of the Environmental Assessment 4

1.2.1 Construction Activities 41.2.2 Resettlement 41.2.3 Public Consultation 51.2.4 Urban Sanitation 61.2.5 Water Quantity Management 6

1.3 Study Area 71.4 Structure of the Report 8

2. Policy, Legal and Institutional Framework 92.1 National Water Policy 92.2 Water Legislation 10

2.2.1 The Water Act 102.2.2 The Land Act 112.2.3 The Municipality Act 122.2.4 The Proposed Environmental Act and EIA Regulations 12

2.3 Institutional Framework 132.3.1 National Water Council 142.3.2 National Directorate of Water 142.3.3 Regional Water Administrations 142.3.4 Water Companies 15

3. National Environmental Setting 173.1 Biophysical Resource Base 173.2 Enviromnental Quality 193.3 Biophysical Resource Use 193.4 Socio-Economic Environment 19

4. Assessment of Urban and Peri-Urban Water Supply 214.1 Introduction 214.2 Issues Common to All Cities/Towns 21

4.2.1 Public Taps, House and Yard Connections, and Sanitation 214.2.2 Beneficiary Involvement in the Location, Planning and

Design of New Distribution Systems 224.2.3 Routing of Distribution Systems 234.2.4 Sewage and Waste Water Ccllection and Treatment 234.2.5 Impacts on Aquatic Life 244.2.6 Socio-Economic Dimensions 24

ii

4.3' Maputo 264.3.1 Existing Water Systems 264.3.2 Current Environmental Situation 304.3.3 Project Description 314.3.4 Environmental Assessment of the NWDP 324.3.5 Analysis of Alternatives 354.3.6 Summary of Recommendations 36

4.4 Beira 374.4.1 Existing Water Systems 374.4.2 Current Environmental Situation 404.4.3 Project Description 414.4.4 Environmental Assessment of the NWDP 424.4.5 Analysis of Alternatives 454.4.6 Summary of Recommendations 45

4.5 Quelimane 474.5.1 Existing Water Systems 474.5.2 Current Environmental Situation 494.5.3 Project Descziption 504.5.4 Environmental Assessment of the NWDP 514.5.5 Analysis of Altematives 544.5.6 Summary of Recommnendations 55

4.6 Nampula 574.6.1 Existing Water Systems 574.6.2 Current Environmental Situation 604.6.3 Project Description 624.6.4 Environmental Assessment of the NWDP 634.6.5 Analysis of Altematives 664.6.6 Summary of Recommendations 67

4.7 Pemba 694.7.1 Existing Water Systems 694.7.2 Current Envirommental Situation 714.7.3 Project Description 734.7.4 Environmental Assessment of the NWDP 744.7.5 Analysis of Alternatives 764.7.6 Summary of Recommendations 77

5. Assessment of Rural Water and Sanitation 795.1 Current Condition of Rural Water and Sanitation 795.2 Project Description 795.3 Recommendations on Enviromnental Issues 805.4 Summary of Recommendations 81

6. Asessment of Water Resources Management 836.1 Introduction 836.2 Management Development Plan for ARA-Sul 84

6.2.1 Introduction 846.2.2 Environmental Concerns Associated with Urban Water Supply 846.2.3 Comments on the Terms of Reference 85

6.3 Corumana Dam Completion Works 866.3.1 Introduction 866.3.2 Comments on the Terms of Reference 87

6.4 Strengthening of Management of Shared Water Resources 876.4.1 Introduction 876.4.2 Environmental Concems Associated with Urban Water Supply 886.4.3 Comments on the Terms of Reference 88

6.5 Joint Incomati Study -- Supplementary Work in Mozambique 896.5.1 Introduction 896.5.2 Environmental Concerns Associated with Urban Water Supply 896.5.3 Comments on the Terms of Reference 89

7. Environmental Management Plan 917.1 Introduction 917.2 Location, Planning and Design 91

7.2.1 Refurbishment/Expansion of Existing Treatment Plants 917.2.2 Distribution Systems 91

7.3 Construction 927.3.1 Water Sources and Treatment Plants 927.3.2 Transmission and Storage 927.3.3 Distribution Systems 93

7.4 Operation 937.4.1 Water Sources and Treatment Plants 937.4.2 Transmission and Storage 937.4.3 Distribution Systems 93

7.5 Resettlement 947.6 Environmental Monitoring and Management 967.7 Environmental Awareness-Building and Training 97

References 99

Appendices

A. Inception Report and Terms of Reference 103B. Economic Analysis 123C. Team Members, Work Schedule and Division of Tasks 137D. People/Organizations Consulted 139E. Public Display and Consultations - Summary Report 142

iv

LIST OF FIGURES

1.1 Mozambique 24.1 The Maputo Region 274.2 The Maputo Water System 284.3 Project Investments in Maputo 334.4 The Beira Water System 384.5 Project Investments in Beira 424.6 The Quelimane Water System 484.7 Project Investments in Quelimane 524.8 The Nampula Water System 584.9 Project Investments in Nampula 634.10 The Pemba Water System 704.11 Project Investments in Pemba 74

v

ABBREVIATIONS AND ACRONYMS

AdM Aguas de MaputoAdN. Aguas de NampulaAdP Aguas de PembaAdQ Aguas de QuelimaneARA Regional Water Administration (Administra,co Regional de Aguas)BA Beneficiary AssessmentCAB Companhia de Aguas de BeiraDAS Department of Water and Sanitation (Departamento da Agua

e Saneamiento)DNA National Directorate of Water (Direc9ao Nacional de Aguas)EA Environmental AssessmentEDM Electricity Company of Mozambique (Electricidade deMocambique)EIA Environmental Impact AnalysisFiNNIDA Finnish Intemational Development AgencyGoM Government of Moz,ambique

4 HC House connectionMICOA Ministry for Coordination of Environmental Actions (Ministerio

Para a Coordena,co da Ac,cao Ambiental)MISAU Ministry of Health (Minist6rio do Sadde)MOPH Ministry of Public Works and Housing (Ministerio das Obras

Publicas e Habita9ao)Mt Metical (local currency)NGO Non-governmental organizationNWDP National Water Development Project (new project title)NWRMDP National Water Resources Management and Development ProjectO&M Operation and maintenancePRONAR National Program for Rural Water Supply (Programa Nacional dos

Aguas Rurais)PT Public tap (standpost)SUPRA Regional water construction unitTOR Terms of referenceWB The World BankWHO The World Health Organization of the United NationsYC Yard connection

Executive Summary vii

EXECUTIVE SUMMARY

The USD 125 million Mozambique National Water Development Project(NWDP) (previously named: Mozambique National Water Resources Management andDevelopment Project) will be funded by the World Bank and executed by theGovernment of Mozambique, in support of the implementation of the MozambiqueNational Water Policy. It will commence in 1997 or early 1998 and have three maincomponents, plus support to capacity-building within Mozambique to successfullyimplement them:

1. Urban and Peri-Urban Water Supply which will rehabilitate and extend the watersupply systems with some complementary investments in sanitary systems in fivecities -- Maputo, Beira, Quelimane, Nampula and Pemba -- incorporating aninvestment program for each city, allocations to support management contracts, andmanagement development for seven other cities;

2. Rural Water and Sanitation consisting of improvement and rehabilitation of smallpiped water and sanitation systems on a pilot basis in rural towns; and

3. Water Resources Management incorporating four sub-projects:3 Management Development Plan for ARA-Sule. Corumana Dam Completion Works* Strengthening of Management of Shared Water Resources3 Joint Incomati Study -- Supplementary Work in Mozambique

In addition, allocations are proposed for capacity development and technicalassistance (project implementation unit), planning and strategy development studies inurban and rural water supply and sanitation, and project implementation.

The NWDP was classified by the Bank as a Category B project. This EA reportwas prepared in accordance with Bank EA practices, relevant guidance from the Bank'sOD 4.01, and terms of reference (TOR) provided by the Bank. As an initial step, ascoping exercise was carried out and resulted in an Inception Report which modified theTOR somewhat. The Inception Report was approved in principle by the Bank withsubstantial comments on the key issues of public consultation, and pollution andenvironmental health problems related to sanitation. These issues were clarified and theEA proceeded on the basis of the Inception Report.

After the draft final EA report was presented, and during the Staff Appraisalprocess, the Bank expanded the scope of the project to include investments incomplementary sanitary systems and development of sewerage rehabilitation plans forimplementation under an upcoming Urban Environmental Management Project. TheTeam did not have access to any documentation on these issues during the work on theEA study. The final EA report therefor reflects this new positive development of theproject only to the degree specific Bank comments (Shepherd 1996b) refer to the newcomponents of the project. The EA report is basically prepared in reference to theproject description as outlined in the Aide Memoire of 1 March 1996 (WB 1996b).

viii Executive Summary

Concerning public consultation during the EA study, it was found that projectcomponents likely to be of direct concem to the public were not sufficiently defined tomake consultation productive at the time of the field work. It was therefore determinedto leave such consultation to the Beneficiary Assessment (BA) and to detailed projectdesign. Comments to the TOR for the BA were offered by the EA team at thecommencement of that study both in writing to the Bank and in meetings with the BAteam. These and recommendations on further consultation are contained in this report.

However, in consultation with DNA, the Bank later decided that the mainfindings and recommendations of the EA report should be presented at public displays.The Team Leader was engaged to assist DNA, and displays with posters and publicconsultations/debates were arranged in the five cities during March - April 1997. Abook for written comments was made available to the public during the displays.

The general public in Mozambique is not yet used to this kind of participatoryapproaches and the display was generally found to be too technically oriented to attractthe interest of the general public. The initiative was welcomed, however, and receivedwide coverage on national television, radio and in the press. A summary report on theexercise is contained in Appendix E of this 2nd edition of the EA report. It isrecommended that an appraisal is made of the experiences from the public display andconsultation. This may provide valuable information for planning of later, similarexercises.

As initially planned, the NWDP would substantially increase water supplies tourban and peri-urban areas of Mozambique without, at the same time, improvingcurrently inadequate sewage and waste water collection, treatment and disposal. Asmentioned above, some complementary sanitary solutions are now incorporated, andanother Bank project expected to begin in 1999, the Urban Environmental ManagementProject (UEMP) will address these sanitation and other urban environmentalmanagement needs. The situation however, still raises justifiable concerns forexacerbating pollution and environmental health problems until the second project isimplemented, or if it is delayed. At the commencement of the study it was determinedthat this EA would not address sanitation, pollution and environmental health issues inthe detail required if the NWDP were considered in isolation. However, it does offersubstantial recommendations on how they can be dealt with.

Water resources management, development and supply is a priority policy issuefor Mozambique and in 1995 the Council of Ministers passed a resolution on acomprehensive National Water Policy. The key water policies, together with centrallegislation of relevance to water -- the Water, Land and Municipality Acts and theproposed Environmental Act with EIA regulations -- and the evolving institutionalframework constitute a basic reference framework for this EA study. For example, theenvironmental monitoring and management plan recommended in this report relates tothe legal and institutional framework.

This executive summary concentrates on recommendations to address significantenvironmental issues for each component or sub-project of the NWDP. With a possibleexception for the policy issue with regard to the project's apparent priority on the

Executive Summary ix

provision of house connections, the EA study did not come up with issues of the NWDPof such potential environmental significance that they would lead to redefinition orrethinking of major components of the project.

Issues Common to the Five Cities

Issues common to the five cities relate to the water distribution system, potentialresettlement, and the design of future sewage and waste water collection and treatmentsystems. It is recommended as a guiding principle that house connections should not beprovided unless and until appropriate and adequatefacilities are available to handlewater- and excreta-related waste. Consequently, the NWDP should switch fromproviding house connections to providing, as a first priority, public taps and, as asecondpriority yard connections. The key arguments for this revised strategy are thathouse connections generate substantial waste water and without, as yet, a properfunctioning sanitation system, the already problematic urban sanitation situation in allcities will be exacerbated and lead to significant increases in water pollution andenvironmental health problems. Giving priority to public taps will also represent abetter fit between supply and demand, improve prospects for cost recovery; and provideaccess to safe water for a larger share of the population at the same level of total cost ortotal water consumption.

A strong particzpatory involvement of the beneficiaries during planning andestablishment of the water distribution systems is recommended. This is important torespond to large variations among neighborhoods and towns, and the differences inexpectation and demand from various segments of the population involved in the NWDP,and to building community support for the new water distribution and sanitationarrangements. Consequently, the Beneficiary Assessment should be carried out in allfive cities and provide a set of design criteria tailored to each community to guide theplanning, design and implementation of the refurbished and/or expanded distributionsystem, with the necessary flexibility needed to accommodate planning assumptions,technical and economical concerns.

An incentive system should be established such that it does not pay to damagewater meters. Provisions for compensation and resettlement should be included in theproject plan and budget, and not be dependent on Government funding.

Regarding the future refurbishment and/or extension of sewage and waste watercollection and treatment systems in the five cities, preference should be given to the useof waste stabilization ponds (oxidation ponds) providing sedimentation and biologicaltreatment. The waste stabilization ponds can for example be designed for reuse ofeffluents in irrigation.

From a socio-economic point of view, there is no question that improvement andexpansion of water supply and distribution systems in urban and peri-urban areas meetsa real and urgent need, and will provide significant benefits. To enhance these benefits,local companies and workers should be contracted to carry out project works in citiesoutside Maputo instead of importing them from other parts of the country.

x Executive Summary

Maputo

Significant environmental issues for the Maputo water supply concem potentialconflicts over use of Umbeluzi River water, minimum flow requirements downstream ofthe Maputo raw water intake, proposed future transfers of water from the IncomatiRiver, and monitoring and management of minimum cross-border flows fromSwaziland. It is recommended that hydrological monitoring at the intake and thoroughanalysis of required minimum flows be carried out. The issue of minimum flows in theUmbeluzi below the intake, and alternative use of water for irrigation, should be keyfactors in the design of NWDP hydrological analyses. These analyses should includeanalyses of the requirements for firm minimum flows from Swaziland andlor transfersfrom the Incomati basin. These issues should also be addressed by the Incomati Riverstudies proposed under the Water Resources Management component of the NWDP. Itis vital that competing water demands, nationally and internationally, be reconciledbased upon both human and ecological requirements, and that feasibility studies intoalternative water sources include environmental assessments to evaluate theenvironmental costs and benefits of each alternative.

Water quality downstream of the Maputo water treatment plant should bemonitored for contamination from the plant and, if required, safe disposal of plantwastes should be provided into a lagoon or landfill.

Beira

Provided that appropriate restrictions are established and enforced on irrigationwithdrawals, and that minimum cross-border flows from Zimbabwe are established andmaintained, increased extraction of water for Beira will not cause any significantenvironmental impact. DNA and/or the new ARA for the region should monitor waterdemands on the Pfngu6 River and, should these demands plus water supply to Beiraindicate potential problems with maintaining minimum flows in the lower river, moredetailed hydrological analysis should be carried out to assist in resolving competingwater demands.

A final solution to solving the saline intrusion problem associated with Beira'sraw water intake has not as yet been determined. We believe that the best option is tomove the intake further upstream and provide a pipeline to the water treatment plant.However, there are several options available and a thorough feasibility study should beundertaken, considering all options, before settling on the final solution. Optionsinvolving a weir in the Pfingu6 River will require a separate environmental assessment.

The existing treatment plants, particularly the newer one, should be rehabilitated,and provide for safe disposal/discharge of sludge and backwash water.

Quelimane

Increased water abstraction from the Licuare River, without a regulating reservoir, willfurther reduce flows with the risk of the downstream river bed remaining dry or with avery low flow over prolonged periods during the dry season. This may cause adverse

Executive Summary xi

ecological impacts. Estimation of the storage volume of a proposed new reservoir (notincluded in the NWDP) should in case include the eventual requirement for a minimumflow downstream of the town intake. An enviromnental assessment should be carriedout for the proposed dam if further planning is initiated.

The proposed weir across the Licuare River should be omitted if possible.Planning for increased treatment capacity must include provisions for safe disposal/discharge of sludge and backwash water. The proposed new transmission main from thetreatment plant to town will, in conjunction with expansion and upgrading of the road (aWorld Bank project), cause significant environmental effects, in particular to farmingfamilies living along the road. Planning and construction of the new pipeline should beclosely coordinated with road planning and a detailed study should be conducted to setthe final pipeline alignment and identify resettlement requirements. The oldtransmission main should be abandoned and the new pipeline equipped with branches tosupply adjacent settlements.

Nampula

Environmental impacts from increased water abstraction from the Monapo River willprobably be minor. However, further investigations will be required to cQnfirm currentflows, to determine the feasibility of greater abstractions, both with the current supplyarrangements and with the proposed second dam, and to assess the need for maintaininga minimum flow downstream of the dam. The second dam (not included in the NWDP)should in case planning is initiated, be subject to an environmental assessment.

Concerning the treatment plants and intakes at the Monapo reservoir, a pipelineshould be built from the treatment plants and along the mountain side track to carrysludge and backwash water to the downstream side of the dam. The new reservoirintake should be located as close as possible to the dam and as far as possible from theexisting leisure area. Chlorination should be shifted from the intermediate reservoirsalong the transmission main to the treatment plant.

Pemba

Significant environmental impacts are anticipated from the proposed extension of theMetuge well field. The impacts relate to lowering of the ground water table, thepossibilities of salinity and effects on and from agriculture. The extension must bebased on thorough hydrogeological investigations and extensive monitoring of the watertable and draw-downs during test-pumping. The area immediately around the Metugewell field should be declared a partially protected zone and new settlements close to thewells should be prohibited. Resettlement of people presently living close to the wellsmay be necessary.

The water supply situation in Pemba is becoming critical. Rehabilitation of theMetuge well field, and reduction of demand through metering and leakage reduction isextremely important.

xii Executive Summary

Rural Water and Sanitation

This component of the NWDP, allocated a lump sum of USD 5 million, is still beingdeveloped and only an outline design document has been prepared which specifies smallpiped water systems (SPS) on a pilot basis with complementary sanitation systems.Specific villages/towns have not yet been identified for the SPS. None of the SPSprojects are expected to require a formal environmental assessment (category A) but,depending on size, some may require environmental analysis.

This EA report lists a number of general environmental issues which could be ofconcern and wZiich should be included in TORs for further investigation and assessmentby feasibility study teams for individual rural towns. Development of design criteriabased on inter alia what people can afford to pay for water should be included in thefeasibility studies, as should identification of external factors which may impede sounddevelopment of individual schemes, such as lack of roads and electricity supplies.

Water Resources Management

This component of the NWDP is comprised of four sub-projects. A set of fourdraft TOR was prepared by the Bank and DNA in March 1996. For each sub-project,the issues which should be addressed to obtain environmentally sustainabledevelopment of the water systems with which each is concemed were assessed,including some raised by the city-based assessments. The issues which can and shouldbe addressed by the NWDP are:

1. The minimum flows required downstream of the Maputo water intakes to controlsalinity intrusion and protect other ecological functions;

2. Proposed future transfers of water from the Incomati to the Umbeluzi River toaugment Maputo raw water supplies; and

3. Monitoring and management of the minimum cross-border flows being deliveredfrom Swaziland and Zimbabwe.

Specific comments were provided on each TOR as to how it should be modifiedto strengthen NWDP response to these issues and, more generally, to incorporateenvironmental management perspectives into the many elements of the sub-projects.

Resettlement

Implementation of the Urban Water component of the NWDP will, in some places,require limited amounts of resettlement. There are established procedures forexpropriations and forced resettlements in the Land Act of 1979. The City of Maputohas reportedly developed and implemented a functional system for resettlements. Aswell, the Bank's Operational Directive 4.30 provides specific guidance on resettlement.In Mozambican practice, the Municipality/City Council is responsible for conductingnegotiations and for providing new sites for settlements as well as necessary logisticsfor moving people and movables. Resettled families are to be issued titles for the newdwellings or homesteads. The respective implementing agency must bear all costsinvolved. It is recommended that the implementing agencies conduct separate studies

ZAVULUVG OU.ULLuuy J%A"

on the resettlement requirements for each project and prepare detailed plans for carryingthem out. Outline procedures for doing so are included in this report.

I It is strongly recommended that funds to cover resettlement and compensationcosts be included in the NWDP project loan.

Environmental Monitoring and Management

General requirements for environmental monitoring and management of the UrbanWater Supply component of the NWDP are specified during the location, planning,design, construction and operation of project facilities. All should be implemented bythe private operators who will take over the city water companies, under the monitoringand direction of the DNA Project Unit (and the provincial MOPH/ SUPRA). Theconstruction requirements should be incorporated into the construction contracts and theoperation requirements should be incorporated into O&M manuals and staff trainingprograms.

Monitoring requirements are specified to be carried out as an integral part of theregular monitoring and reporting procedures for the various components of the project.Identified institutions are the Bank supervisory missions, the DNA Project Unit with itsprovincial administrations and/or SUPRAs, the water company managements, theMinistry of Health and its laboratories, and MICOA. Monitoring of water use is anintegral part of the mandate of ARA-Sul and the other ARAs to be established in thefuture. Municipal councils will also play a role in environmental monitoring in thefuture when their responsibilities are defined and their new administrations arefunctioning.

Environmental Awareness-Building and Training

Few training needs will be required beyond those embodied in the capacity-buildingelements of the NWDP. Training will be required for personnel of DNA (and provincialMOPH/ SUPRA), MICOA, private-sector water company management and operationalstaff, and later municipal council staff, to monitor and supervise environmentalperfonnance during construction of new and refurbished works being funded by theproject. The DNA Project Unit should conduct a workshop for key persomel of theseinstitutions on the recommendations of the EA report and how they should beimplemented.

The water companies should make their management, supervisory and field staffaware of environmental provisions of construction contracts. Field staff should betrained alternative practices for dealing with enviromnental concerns on-site.

Introduction I

1. INTRODUCTION

1.1 Overview of the Project

To support the implementation of the Government of Mozambique's (GoM) NationalWater Policy, the National Water Development Project (NWDP) to be funded by theWorld Bank (WB or the Bank) will assist government efforts to improve themanagement of water resources and increase the quality, reliability and coverage ofurban and rural water supply services. The immediate goals (World Bank 1996a) are:

i) To improve the policy and institutional framework for the management of waterresources and the provision of water services;

ii) To restore deteriorating infrastructure and increase coverage to progressivelyprovide access to safe water for an increasing proportion of the population; and

iii) To strengthen the ability of government institutions to plan, coordinate andmonitor the delivery of water supply services.

The project will have three components, plus support to capacity-building withinMozambique to successfully implement them:

i) Urban Wate

The project will rehabilitate and extend the water supply systems with some initialsanitation works in five cities (Figure 1.1) -- Maputo, Beira, Quelimane, Nampulaand Pemba. In the initial years, priority will be given to rehabilitating existingheadworks and distribution systems, and to bringing operations, maintenance andadministration under control. Later years will bring the planning and extension of*service delivery and preparatory activities for coping with the increased volumesof wastewater that will ensue.

ii) Rural Water and Sanitation

Funds will be made available for the improvement and rehabilitation of rural andsmall town water supply, treatment and distribution systems, with complementarysanitation solutions.

iii) Water Resources Management

The project will support the strengthening of water resources management bothwithin Mozambique and with respect to international waters. Funding will bedirected toward institutional development, river basin studies (local andintemational) and priority investment in bulk water supply (i.e. the CorurnanaDam).

The project will be implemented under the oversight of the Ministry of PublicWorks and Housing (Minist6rio das Obras Puiblicas e Habitagio, MOPH) withassociated water companies also playing major roles. The actual design, construction,operation and maintenance of all existing, upgraded and new

2 Introduction

Figure 1.1: Mozambique

... ......... ..... ~.-..~

Nampula

.........

....... .. ~~~ ~ ~ A

Introduction 3

facilities will be carried out by private operators who will act autonomously but beaccountable to the Govenmment for the cost-effective provision of services. As theresponsible govenmment authority, the National Water Directorate (Direccao Nacionalde Aguas, DNA) will develop a new role in regulating and monitoring the performanceof the private sector operator(s). Local communities will be consulted in the earlystages of the project to promote local involvement in the design and execution of projectsub-components. The project may also involve non-governmental organizations in theimplementation of the peri-urban, rural and small town schemes.

The project is expected to begin in 1997 or early 1998 and extend for five years.

The NWDP was originally designed not to involve any capital investments indrainage, sanitation, sewerage and waste water treatment in the five cities. However, itis part of a much larger country assistance strategy being implemented in Mozambiqueby the Bank (WB 1995). Specifically, the project is expected to overlap with the UrbanEnvironmental Management Project (UEMP) which will address drainage, sanitationand other urban needs and begin in 1999 (Shepherd 1996a). The Bank has also laterincorporated the following components in NWDP: (i) finance of cleaning and inspectionof the cities' existing sewerage networks and development of sewerage rehabilitationplans for implementation under the UEMP; (ii) a fund for complementary, low-cost-sanitation in areas where the water distribution network is to be rehabilitated/extendedbut where such facilities are lacking; and (iii) adequate draining facilities for allrehabilitated and new connections to the water distribution network (Shepherd 1996b).

Moreover, GoM is considering to prepare a four-year program (DHV 1995) whichmay comprise institutional strengthening for environmental management within GoM;the development of a master plan for sanitation, drainage and environment in 13 cities,including the five incorporated in this project; and the development of a coastal zoneenvironmental management plan. Because of the close relationship between the watersupply aspects of this Bank project, the sanitation aspects of the second Bank projectand the proposed new four-year GoM program, this Bank project will include, at therequest of the GoM, provisions for coordination of the three initiatives to ensure that aholistic, integrated result is obtained in the management of urban water services in thefive cities (Shepherd 1996a).

Project details relevant to carrying out the environmental assessment are presentedin Sections 4, 5 and 6 along with the assessment of associated environmental issues.Project details for each of the five cities were drawn from the "Provincial Towns WaterSector Study" prepared by DHV Consultants BV (DHV 1994) and from informationfrom the Bank on their proposed investments (e.g. WB 1996b). DHV's water demandprojections were based on population growth rates drawn from goveanment data, targetsfor the volume and type of supply and distribution set by the GoM, and anticipatedreductions over time in the amounts of unaccounted-for water in each municipal system.Possible changes in the water tariff structure were not considered by DHV. This is a taskfor the ongoing Beneficiary Assessment study.

4 Introduction

1.2 Scope of the Environmental Assessment

The NWDP is classified as Category B by the World Bank for the purposes ofenvironmental assessment (EA), and this EA report was prepared in accordance withWorld Bank practices for such projects. Specifically, comprehensive terms of referencefor the study were prepared by the Bank (Appendix A) and then refined by the EAconsultant in-country. The results of this "scoping" work were embodied in anInception Report (Appendix A) to the Bank and DNA, and the EA proceeded on thebasis of the information and analyses in that report, after substantial comments offeredby the Bank on issues of public consultation, and pollution and environmental healthproblems related to sanitation were discussed and the issues clarified.

1.2.1 Construction Activities

By far the largest component of the project will be rehabilitation or upgrading ofexisting water supply facilities involving no disturbances of new sites. Existing projectsites were examined for environmentally sensitive aspects but it is expected that mostenvironmental protection requirements during construction can be adequately managedusing standard, general construction contract requirements (e.g. for trench openings,erosion control, dust suppression) coupled with supervision and monitoring. Thesegeneral environmental requirements were developed during the EA and form part of theenvironmental management plan (Section 7). Thus, most activities for the rehabilitationor upgrading of existing facilities were not analyzed in detail in the EA. Sensitiveaspects of particular existing sites/routes (e.g. resettlement) were addressed with site-specific recommendations and construction contract requirements. Known newsites/routes were examined and specific siting and construction managementrecommendations made.

1.2.2 Resettlement

The project will involve relatively little resettlement. It might occur, for example, in:* the siting of new works (e.g. new storage tanks, expanded distribution systems);* the upgrading of existing works where people have settled in working areas (e.g.

main transmission lines);* the construction of new transmission mains (e.g. Quelimane); and* the construction of new dams in Nampula, Quelinane (not part of NWDP) and

establishment of partially protected zones (e.g. Pemba).

Known locations of new project works and possible restricted areas were surveyedand resettlement estimates and strategies were prepared based, in part, on consultationswith officials and individuals or groups which may be affected. Where locations werenot known, the potential need for resettlement was identified for future study. In eithercase, resettlement policy, principles and guidelines were recommended to guide thepreparation of separate resettlement plans.

Introduction 5

1.2.3 Public Consultation

The World Bank's OD 4.01 (paragraph 19) specifies that EA studies includeconsultation with affected groups and local NGOs "to understand both the nature andextent of any social or environmental impact and the acceptability of proposedmitigatory measures, particularly to affected groups". On this project, the major projectcomponents likely to be of concern to the public are the introduction of new tariffs forwater, the extension of distribution networks and, perhaps, the linkages betweenincreased water supply and improved drainage, sanitation and waste water collectionand treatment works. None of these components were sufficiently defined to beadequately considered in the EA at the time the EA was carried out. Moreover, the firsttwo are the focus of the major Beneficiary Assessment (BA) being undertaken as part ofproject preparation by the Bank. Thus, the EA did not consult the public on these issues,but recommends means for the BA to address them. The EA team did provide advice tothe Bank on the TOR for the BA study.

The final draft report was presented to the DNA and World Bank in June 1996.The Team Leader was later engaged by the Bank to assist DNA in preparing publicdisplays and consultations on the EA Report's main findings and recommendations.Public displays were arranged in the five cities during March - April 1997. A report onthe exercise, approved by DNA, was prepared in June the same year. A summary of thisreport is attached as Appendix E of this 2nd edition of the Report.

It is envisaged that the BA and subsequent community consultation will identifypriority areas for extension of the distribution networks and that levels of service, thelocation of facilities and the need for complementary sanitary initiatives will be agreedin consultation with the communities (Shepherd 1996b). The consultative work on theBA should incorporate public education on the costs public taps, yard connections andhouse connections, the number of people they can serve and the health consequences ofimproving water supply without parallel improvements in sanitation, so that potentialbeneficiaries are able to make informed comments and choices. It is important that allsectors of the pei-urban societies are being adequately heard.

Consultation about potential drainage and sanitation concerns are also discussedbelow. Another issue which may concern the public is the potential need to resettlepeople from project work areas and eventual partially protected areas. This issue wasdiscussed above.

The planned introduction by the NWDP of foreign management of the watercompanies may also be of public concem. It is recommended that the issue is subjectedto public consultations before contracts are signed. Proposed management arrangementsshould be advertised in the media (radio/newspapers) and exhibited for public reviewand written comments, and public meetings should be conducted in each city. The issueshould also be incorporated in the BA work, to ensure that the poorer, uneducatedsegments of the population are also heard.

6 Introduction

1.2.4 Urban Sanitation

As discussed earlier (see section 1.1), this water supply project originally contained noinvestments in urban drainage, sanitation or waste water treatment. It is, however, partof a much larger country assistance strategy being implemented in Mozambique by theBank which will include such investments in a project which will overlap with this one.Clearly, increasing urban water supply without making complementary improvementsto drainage, sewerage and waste water treatment is a prescription for substantialnegative effects on pollution levels and human health. An EA of such a project wouldhave to assess these effects very thoroughly.

However, because this water supply project will be closely linked to a secondprogram of investment in drainage, sewerage and waste water treatment works, this EAhas omitted detailed assessment of urban pollution and environmental health effects.The EA does consider what monitoring ofpollution and health indicators will berequired both to identify impacts and design mitigation measures should the secondproject not proceed, and to provide information for the planning of that project. TheEA of the second sanitation project should include an assessment of health andpollution effects.

This is a significant scoping feature which assumes a firm commitment by boththe Bank and the Government of Mozambique to the timely implementation of thesecond project. Proceeding with this water supply project, as proposed in the feasibilitystudies, in the absence of such commitment could result in substantial negative impactson pollution and urban environmental health.

1.2.5 Water Quantity Management

The project is intended to bring new water supplies to urban, peri-urban and rural townareas and it is thus expected that demands on both surface and ground water resourceswill be increased. In addition to the supply of potable water, other demands and valuesassociated with water resources may be affected if urban water withdrawals aresignificant enough. These include:

Irrigation: Reductions to the availability of irrigation water can haveconsequent effects on agricultural production, land use and socio-economic factors.

Waste dispersion: Flow reductions in rivers can leave less flow to carry away anddisperse, for example, agricultural chemicals, urban waste waterand silt with consequent downstream effects on water quality anddependent water uses such as domestic water supply, tourism andfisheries.

Salt intrusion: Reduced river flows can result in more extensive upstreamintrusion of salt water and consequent effects on aquatic life andwater suitability for irrigation and urban water supply. Groundwater withdrawals can similarly cause saline intrusion and

Introduction 7

consequent reductions in water quality for human use andagriculture.

Ecological functions: Reduced flows in rivers, along with consequent water qualitychanges, can affect aquatic environments. Ground waterabstraction can lower water tables and have consequentecological effects.

It was important during this EA to try to forecast and quantify the downstream andground water effects of increased water withdrawals precipitated by the project. At thesame time, hydrological and hydrogeological data are sparse in Mozambique, and it wasnot possible to estimate these effects to the degree desired. The project includessubstantial components of monitoring and research on specific water systems and ofdevelopment of water resources management capacity. Where the EA could notrealistically forecast the effects of water withdrawals, recommendations were made forfocusing these research and management efforts, in part, on (1) quantifying availablewater, (2) analyzing the socio-economic and environmental trade-offs betweencompeting water uses, and (3) developing measures for managing the environmentaleffects of water abstraction for human use (e.g. setting minimum river flows to keepdownstream effects within acceptable limits).

More generally, the TOR specify that the EA "assess the mechanisms proposed bywhich Mozambique is to seek to increase its security of supply from international riverbasins" (Page 1, Section 2). This is a very "big" question relating to the capacity ofMozambique to both understand and manage its water resources (which the project isintended to strengthen), and to its ability to negotiate and ensure compliance withinternational water basin management agreements. NORAGRIC feels that a thoroughassessment of this matter is possible only within the broader mandate of an eventualsectoral EA of the entire water sector in the country. Nonetheless, the issues whichneed to be addressed in such a sectoral EA, and in securing water supplies from thesebasins, were identified during this project EA. These results should be used inconducting such a sectoral EA and/or as suggestions for detailing the capacity buildingelements of this project for water resources management in intemational river basins(Section 6).

1.3 Study Area

The geographic areas for the EA are those specified in the TOR and as modifiedaccording to the inception report (Appendix A). The areas were:

i) the five cities -- Maputo, Beira, Quelimane, Nampula and Pemba -- that will be thefocus of the urban water supply investments, their water intake areas and the maincatchment and/or ground water systems (including their recharge areas) whichsupply them;

ii) the Cormuna Dam; and

8 Introduction

iii) the limited number of rural towns, to be identified later, for which piped watersupply systems will be upgraded andlor rehabilitated.

1.4 Structure of the Report

Following this introduction is a review of the policy, legal and administrativeframework in Mozambique which governs the management of water resources andenvironmental assessment (Section 2). In Section 3 is a brief overview of the nationalenvironmental setting for the NWDP.

Section 4 presents the environmental assessment of the water supply proposals forthe five cities included in the NWDP - Maputo, Beira, Quelimane, Nampula andPemba. It begins with a discussion of issues common to the five cities. Each cityprogram is then considered in turn; the assessment recommendations summarized at theend of each city sub-section.

Sections 5 and 6 present the assessments of the Rural Water and Sanitation, andthe Water Resources Management components of the NWDP.

An environmental management plan for the NWDP is then presented in Section 7.

Relevant references used are listed at the end of the main report.

Four appendices complete the report. The first is comprised of the InceptionReport and terms of reference which established the scope of the assessment. Aneconomic analysis of aspects of the NWDP is presented in the second appendix. Thethird.appentdix identifies the EA team members and outlines the EA work schedule anddivision of tasks among the team members. The people and organizations consultedduring the study are listed in the final appendix.

Policy, Legal and Institutional Framework 9

2. POLICY, LEGAL AND INSTITUTIONAL FRAMEWORK

2.1 National Water Policy

In 1995 the GoM approved a new National Water Policy (resolution of the Council ofMinisters 7/95, 8 August). The resolution established the following principal policieswith regard to water:

* Satisfaction of basic needs with regard to water supply and sanitation is a highpriority, in particular to rural, low income groups.

* Demand driven provision of services with active participation of beneficiaries atrelevant stages of planning, implementation, management of operation andmaintenance.

* Price of water should reflect its economic value, and eventually cover the cost ofsupply.

* Water resources management shall be decentralized to autonomous catchment(basin) authorities. Provision of water supply and sanitation services shall likewisebe decentralized to local autonomous agencies which should become financiallyself-sufficient.

3 The role of the Government will be changed to one of setting priorities, directions,definition of minimum levels of service, information dissemination and stimulation,and regulation of service activities.

* The sector policy on water resources management will be integrated with policiesfor local administration, health, agriculture, industry and finances.

- Investment policies shall balance economic development with poverty alleviationand public health improvement.

* Institutional capacity of the sector shall be strengthened and expanded to involvebeneficiaries, NGOs and private organizations, i.e. decentralized management andtraining. The new role of the Government, as outlined above, will be strengthenedthrough capacity building and human resources development.

* Private sector participation in water resources development, supply and sanitationservices will be promoted by the GoM.

The water policy document states that urban water supplies shall be provided byautonomous entities, and that a tariff reform shall allow for recovery of operational andmaintenance costs and later on contribute to future investments. However,infrastructure development and investments will in the foreseeable future remain theresponsibility of the State.

Provision of basic water supply to low income groups in pei-urban areas is oneof the main objectives of the water policy. Public participation through standpostcommittees is envisaged and cross subsidies in the tariff structure shall ensure thatpoorer groups can afford water.

10 Policy, Legal and Institutional Framework

2.2 Water Legislation

A number of acts and resolutions regulates various aspects of water resourcesmanagement and water use in Mozambique. The following presentation concentrates onkey legislative issues.

2.2.1 The Water Act

The Water Act (Law 16/91) establishes in its first two articles that the right to use waterresources shall be subject to a guarantee of preservation and management in accordancewith national interests. Water resources are defined as inland waters and their basins,and ground water with or without surface springs. This constitutes what is designated asthe public water domain. National interests are not further defined.

The main objectives of the Act are to define a general framework formanagement of the water resources, define users rights and ultimately the institutionalcontrol and monitoring of water use. Water is the property of the State according to theAct, and the public may be granted rights to the use of water. The Act has, however, notbeen supplemenited with appropriate regulatory statutes, neither has the Act yet beenamended to comply with the new national water policy.

The Water Act envisages a Water Master Plan to be prepared for water resourcesmanagement. This plan is supposed to guarantee sustainable use, environmentalprotection and water quality, but the planning work has not yet started.

Water for human consumption has priority over other uses of water. Monitoringand control of water quality is vested with the Ministry of Health (MISAU). TheMinistry should:

* Establish control systems and procedures;* Set bacteriological, physical and chemical standards for drinking water;* Establish appropriate treatment procedures;* Apply special protection measures; and* Carry out sanitary control of water system workers.

No standards for drinking water or environmental standards have, however, beenestablished in reference to the Water Act. In practice MISAU applies a somewhatliberalized set of standards in reference to the standards issued by WHO. Water samplesare tested in provincial laboratories and the test results regularly sent to the watercompanies and MISAUs Directorate of Hygiene. Only microbiological testing iscarried out; the samples are not screened for chemical contents. Apart from preparingthe test reports, it is not known what kind of actions the Ministry or the water companiestake on the reports.

The Act stipulates that standards for installations and equipment should also beestablished by statutory regulation. This regulation is still not in place, and in practice it

Policy, Legal and Institutional Framework II

is up to the donors and their expatriate consultants to set-standards on a project toproject basis. Both the Bank and GoM should be concerned about the standards issue,and ensure that necessary regulation is in place before contracts are negotiated withprivate water company operators.

There is also no effective regulation in place with regard to sanitation, wastewater or solid waste. This mean in practical terms that there is no legal instrumentunder the Water Act that may be applied and enforced to prevent water pollution. TheAct stipulates, however, that MOPH is responsible for the authorization of any disposalsystems. The provincial administration, apart from the Department of Health, has noresponsibility or authority with regard to sanitation and prevention of pollution.

The Act establishes as well the polluter shall pay principle. No cases are knownwhere this principle has been enforced.

The Act stipulates that water projects shall be subjected to social, economic andenvironmental analysis at the expense of the project owner. However, no regulationsare yet in force with regard to the necessary analyses stipulated by the Act and, as far asthe EA team could determine, no water supply or sanitation project in Mozambique hasbeen subjected to specific environmental analysis prior to implementation andconstruction. The present project appears to be the first one, with the possible exceptionof internal EAs carried out by donors during project preparations.

2.2.2 The Land Act

In relation to water, the Land Act defines as partially protected areas those areas neededfor protection and conservation of water resources for the safety of the public (Law 6/793 July, with decree 16/87 15 July). Rivers and catchment areas for intake installationsfor urban water supply, areas surrounding boreholes and natural springs may thus beconsidered as partially protected zones. The same applies to ground water and areaswhich might be subjected to flooding. The water policy resolution states that groundwater areas shall be declared as protected zones if they become endangered by overuse.

However, enforcement of the legislation is dependent on specific decreesdefining borders and restrictions to be applied for partially protected areas, conditionsfor their use and clarification of responsible management bodies and mechanisms forprotection and conservation. Decrees to this effect shall be published and the areademarcated. The entity responsible for establishing a protected area shall bear the costsinvolved regarding publication and enforcement of the legislation. The entity shall alsobear the costs of compensations and necessary resettlements.

The Water Act defines some of the conditions and restrictions applicable topartially protected areas, i.e. with regard to animal husbandry, irrigation and modemagriculture (use of fertilizers and pesticides), and settlements.

With regard to compensation, the Land Act recognizes such rights only in thecase where the incumbent has title to the land and if he has made investments that


cannot be moved. There are few smallholders who have any registered rights under theAct. The practice is, however, to recognize land rights regardless of titles. Titles willnormally be issued for new land given in exchange to smallholders in cases of forcedresettlements. The municipality councils are responsible for the administration ofresettlement and compensation cases.

A new Land Act is presently being discussed by the legislative, and the questionof recognizing traditional rights in the law and other issues have stirred controversy.The donors have engaged themselves in the debate and the outcome was not clear at thetime of this report. There is, however, no specific and commonly accepted concepts ofwhat are traditional land rights. In certain areas rights may be linked to the use of trees,not the land or soil the trees grow in. If traditional land rights are to be recognized bythe new law, appropriate definitions must be incorporated.

2.2.3 The Municipality Act

A recently approved Municipality Act (Law 3/94) decentralizes the responsibility of,inter alia, water supply and environmental protection to the municipality councils. TheAct further stipulates that water companies should be subordinated the respectivemunicipality councils, but no furither statutory regulations have been issued. The Acthas not yet been implemented. City and municipality councils are still regarded as theextended arms of the central state administration, and a political controversy overorganization and implementation of local elections has led to postponement of directelections to municipality councils.

In the case of this project, the Bank and GoM have agreed that DNA shallsupervise directly the introduction of private management contracts for the five relevantwater companies.

2.2.4 The Proposed Environmental Act and EIA Regulations

Traditional Mozambican culture has certain perceptions related to the preservation ofnatural resources but Portuguese culture, which has influenced the administrativeestablishment of the Mozambican state for centuries, contains very few references toconservation and protection. This is contrary to, for instance, the British culture whichfor decades has influenced environmental strategies and policies in the previous Britishcolonies in Africa. Policy issues like sustainable environmental development,conservation and natural resources management, were recently brought on thedevelopment assistance agenda by international organizations and certain donorcountries. As a result, most developing countries already have, or are in the process ofpreparing national environmental action plans and environmental legislation.

And thus, despite the lack of an environmental conservation culture inMozambique, a new Enviromnental Act is presently being debated by the legislative. Itis a general law and does not define any analysis criteria or offer any environmentalstandards. It does, however, establish an universal principle of EIA studies. It is

Policy, Legal and Institutional Framework 13

envisaged that the Ministry for Co-ordination of Environmental Affairs (MICOA) willco-ordinate the work of the various ministries on statutory regulation. Draft EIAregulations are presently being prepared by a working group. If approved, the statutoryregulation will establish procedures for the preparation and review of EIAs, as well ascriteria for definitions and degree of detail, public participation mechanisms andstandards to be used.

The probable procedures to be established for EIA on projects defined under theregulation are:

* Pre-screening of projects by MICOA (4 alternative categories).* Project specific TORs for EIA to be issued by MICOA in co-operation with the

relevant line ministry as a directive to the applicant.* The EIA will be carried out by the applicant.* MICOA will do an EA review, with participation of other involved ministries and

institutions.* MICOA will eventually issue the enviromnental license on four levels, with

monitoring procedural guidelines attached.* The EIA and the MICOA EA will be published, not the technical reviews.* The project owner shall carry out environmental monitoring and report to MICOA

a and the relevant sector ministry in accordance with the guidelines.* MICOA will carry out ad hoc inspections and provide feedback to the project owner

on the inspection and monitoring reports.

Introduction and follow up on the Environmental Act and the EIAs will needsupport from the donor community. A number of donors are already, or want to,support MICOA and its activities. MICOA will thus, probably with Dutch support,develop a Center for Environmental Monitoring.

2.3 Institutional Framework

The field report from the Bank project preparatory mission 5-22 June 1995 (WB 1995)offers an overview of the legal and institutional framework for water resourcesmanagement and water supply, and this will not be repeated in detail here.

In brief, the institutional framework consists of the following institutions:

* The National Water Council,* National Directorate of Water (DNA) of Ministry of Public Works and Housing

(MOPH),* International River Basin Committees,* Regional Water Administrations (ARA) with Basin Committees and Basin

Management Units,* Water Companies, and* The Irrigation Institute, irrigators, EDM, other users.


2.3.1 National Water Council

The National Water Council was created under the Water Act. It consists of theMinisters of Agriculture, Industry and Energy, and Mineral Resources, the President ofthe Institute for Rural Development and the National Director of Water. The newMinistry for Co-ordination of Environmental Affairs is not yet formally represented onthe Council.

The Council shall ensure co-ordinated management of issues under the Act, andshall also ensure participation of the public and compatibility of the enforcement of theAct with national development priorities and the need for sustainable environmentaldevelopment.

2.3.2 National Directorate of Water

The National Directorate of Water (DNA) is under the MOPH, responsible foradministration of the national water policy, regulating and supervising.water operations,maintaining a national database, and carrying out national planning.

DNA is divided into five departnents:

* Administration and Finance (DAF)a Water Resources (DRH)- Water and Sanitation (DAS)- Studies, Planning and Investments(DEP)- National Rural Water Programme (PRONAR)

A separate unit for intemational rivers (Gabinete dos Rios Internacionais) isbeing created within DNA. The organization and status of the unit are not yet finalized.

On the provincial level, DNA is represented by the Provincial MOPH with aWater Departnent. Although the municipality councils, according to the MunicipalityAct, have a role to play with regard to water supply and environmental management, itis assumed that the provincial administration, as a representative of the central state, stillfor some time will have a leading role in these issues, related to water supply.

2.3.3 Regional Water Administrations

The main managing bodies for water resources management are the Regional WaterAdministrations (ARAs). ARA-Sul for the South (up to Save River basin) has beencreated and is functioning. The other ARAs for the Centre, Zambeze, Centre/North andNorth are still only paper creations (decree 26/91 14 November).

Policy, Legal and Institutional Framework I5

The ARA-Sul competence encompasses:

* Participate in the preparation, implementation and revision of river basin'shydrological monitoring activities.

* Administer and control water allocations.* Establish and maintain records of water resources and water users, as well as

introduce and charge water user fees.* License and grant concessions for the use of waters in the public sector, authorize

effluents, impose administrative obligations, inspect and monitor that the respectiveconditions are fulfilled.

* Approve and inspect hydraulic works.* Pernit and cancel licenses and concessions.* Design, construct, operate and maintain works.* Provide technical and advisory services to State institutions and public and private

entities and individuals.* Collect and maintain hydrological data for effective river basin management.* Resolve water use conflicts.* Act as a water control authority by enforcing corrective measures in cases of

unauthorized works, non-licensed water abstraction, or polluting operations.* Propose partially protected areas in reference to the Water and Land Acts.* Recognize traditional water use rights by registration of such rights.

For each river basin, Basin Committees are formed, with all stakeholdersrepresented. The Basin Committees relate to Basin Management Units under the ARAadministration. It is intended to also establish International River Basin Committees.

2.3.4- Water Companies

Entities responsible for providing water supply services in the cities are called watercompanies. Except for Aguas de Maputo (AdM), the legal status of the othercompanies, and their administrative and supervisory linkages, are unclear and vary fromone city to another.

Aguas de Maputo is a registered State enterprise, and is according to legislationsubordinated to the Maputo City Council. However, AdM operates with a high degreeof autonomy. New construction works, distribution networks etc. have to be approvedby the City Council, which is responsible for physical planning. Relations appear to befunctioning well.

In the other cities where the water companies are operating without properlegislative connections, they are supervised by the provincial director of MOPH onbehalf of DNA. (Companhia de Agua de Beira is still legally a private company). Thecompanies report on water production, performance and billing. No system forenvironmental reporting and monitoring is in place.

Water company management maintain they have no formal links with therespective city councils, and relations are strained between water companies and city


councils in some of the cities. In Beira the two parties hardly talk to each other. InQuelimane and Nampula there are also co-operation problems, while Agua de Pembaand Pemba City Council seem to cooperate fairly well.

In the present situation with unclear legal and institutional relationships betweenthe centre, province and city/district, it is not likely that management contracts for watercompanies would attract serious private companies without donor funding through thecentral government. However, the proposed arrangement should be regarded as atransitory one. Direct supervision could be transferred to the city councils in the futurewhen they are properly elected and the new administrations are functioning.

National Environmental Setting 17

3. NATIONAL ENVIRONMENTAL SETTING

Biophysically, socially and economically, Mozambique has been strongly influenced bymany years of war which only ended in 1992, recent droughts and the consequentmigration of about one-third of the rural population from the countryside to urbancentres, peri-urban areas and transportation corridors. These factors have also meantthat the information base for environmental and natural resources management isfragmented and unreliable. Thus, the discussion in this chapter, drawn from WorldBank (1993) and DNA (1994), should be considered indicative only.

Because of the war and depopulation of the countryside, rural areas are thought tobe in relatively good condition as agricultural land was left fallow and forestry andmining activity declined sharply. At the same time, areas receiving war-inducedmigration are suffering from deteriorating or lack of infrastructure, water pollution andlack of sanitation, coastal erosion and localized deforestation where the carryingcapacity of the environment has been overwhelmed.

The following brief description of the national environmental setting is focused onthose aspects which are necessary to appreciate the effects of the proposed project.

3.1 Biophysical Resource Base

Mozambique's total area of almost 80 million ha is comprised of i) a coastal area and90% of the region south of the Save River which averages 200 m above sea level (as.l.);ii) a middle plateau north of the Save and westward into the Zambezi valley, 200-500 ma.s.l.; iii) an upland plateau, mostly in the north, at 500-1000 m as.l.; and iv) a highlandand upland area along the Malawi and Zimbabwe borders. North of the Save, a well-defined rainy season from November/December to March/April brings annual rainfallaveraging 1000-1400 mm and increasing to more than 2000 mm in mountainous areas.South of the Save, the rainy season is irregular and unpredictable, often with long dryperiods. Average rainfall here is 600-800 mm, dropping to 400-600 mm inland andreaching 800-1000 mm at the coast. Soils in the northeast and at higher altitudes arelargely fertile light clay and clay loams while, in the south and coastal plains, soils aresandy except for the rich alluvial deposits of the major rivers and streams. Southernareas are particularly subject to floods and salinization. The country's five agro-ecological zones range from "specialized and diversified", mostly in the north withfavourable conditions for diversification of crops, to "extensive" in the south whereagriculture is limited to drought-resistant or irrigated crops. About 36 million ha, 45%of the land area, are considered cultivable.

Mozambique's woodlands cover some 70% of the land area and are comprised ofbroadleaf forests (about 48%), grassland with trees (21%) and mangroves (1%). Theirproductivity is not known. There are also about 42,000 ha of plantation forestestablished to provide fuelwood for urban and peri-urban areas but, reportedly, areconsidered unattractive for that purpose and contribute little to alleviating pressure on

18 National Environmental Setting

natural vegetation. Natural forests are estimated to provide 85% of the country's totalenergy consumption as firewood and charcoal.

Nearly half of Mozambique's surface water comes from rainfall within thecountry. The balance comes from rivers draining the western mountains to the IndianOcean and mostly rising in neighbouring countries. The largest portion of surface wateris in the Zambezi River. Two of the international rivers provide water for the largesttwo of the five cities adressed by the proposed project -- the Umbeluzi (Maputo) and thePuingue (Beira). An agreement with Swaziland from 1976 regarding the Umbeluzistates that Mozambique shall receive, at the border, a daily minimum inflow of 40% ofthe measured inflow at two key hydrometric stations. No similar agreement exists withZimbabwe regarding the Pungue River. Though only a minor part of the Punguecatchment area lies within Zimbabwe, it is estimated that 25% of the mean annualrunoff originates from that area.

The majority of rivers have a torrential regime with high flows during the rainyseason (November to March/April) and low flows during the dry season. Some arecompletely dry during prolonged droughts. In the flatter areas of the coastal zone, saltwater intrusion is commonplace, especially in the dry season.

Useful and reliable hydrological data is scarce in Mozambique. The 260hydrometric and 340 rainfall stations which existed in 1975 were severely depletedduring the war to 60 and 75, respectively, in 1990 (DNA 1994). Rebuilding of thenetwork increased those numbers to 73 and 83 by 1993 but is hampered by financial andorganizational constraints, lack of skilled personmel, low level of interest from donors,and inaccessibility of rainfal stations and stream guages due to mines. As of 1984,about 38% of the hydrometric stations and 10% of the rainfall stations had less than 10years of records.

There are 13,000 km2 of inland water including the Cahora Bassa reservoir on theZambezi River, part of Lake Malawi (Lago Niassa) and 1,300 lakes. About 70% of therural population and some of the major urban centres rely solely on groundwatersupplies.

There are more than 2,500 km of coastline and about 68,300 km2 of continentalshelf. The shore, primarily soft dunes and sand, is subject to heavy sediment deposition.A diversity of coastal ecosystems, including estuaries, wetlands, mangroves, coral reefsand coastal lakes, play a crucial role in maintaining coastal and marine species,particularly fish, in protecting the coast from wave action and erosion, and in reducingflooding and erosion of river banks.

Mozambique's waters support a wide variety of marine and aquatic fauna - about50 fish species were reported as endemic in 1950 and some coral reefs are reported to behigh in biodiversity. The country has five protected marine and coastal areas butenforcement of protective legislation has been largely neglected.

National Environmental Setting 19

3.2 Environmental Quality

Data on air and water quality in Mozarnbique are scarce. A study on the environmentalaspects of the Pequenos Limbombos dam (1995) indicated water-bome chemicalsprobably originating from pesticides and fertilizers used in agriculture and forestyplantations in Swaziland. However, the key issues of monitoring and enforcement ofany agreements with riparian states will remain to be solved without the properinstitutional mechanisms in place.

Air pollution is not considered to be an environmental problem in Mozambique,except from vehicle emissions in the main cities.

3.3 Biophysical Resource Use

Most of Mozambique north of the Save River has traditionally been under shifting slashand bum cultivation; this should be sustainable for many years if current land usepatterns and low population density continue. South of the Save, however, farmers insome densely populated areas have access to little or no fallow land. More than 3.3million ha of cultivable land has irrigation potential but only about 3% is currentlyirrigated.

Coastal and deep sea fishing play a central role in the Mozambican economy, are amajor source of foreign exchange and domestic nutrition, and provide a significantsource of coastal employment. Prawn and lobster contributed about 42% of fisheriesexport earnings in 1990. With the exception of shrimp, current exploitation of fisheriesresources appears to be well below conservative estimates of sustainable yields. Mostanimal protein consumed in the country, and more than 65% of the total fisheryproduction (including inland fisheries), are provided by small-scale and artisanalfishermnen.

Fuelwood supplies some 85% of the country's domestic energy demand. Otherenergy sources are underdeveloped due to economic stagnation and transport obstaclesduring the war. In 1987, hydropower potential was estimated at 11,000 MW of which20% had been exploited, primarily by the Cahora Bassa dam on the Zambezi River(2,075 MW installed capacity). However, Mozambique consumes little power from thisdamn (South Africa is the largest beneficiary) and imports nearly half of its electricityfrom neighbouring countries.

3.4 Socio-Economic Environment

The present and near-future condition of Mozambique's environmental quality andnatural resource base are defined by the poverty and geographical distribution of thepopulation after 16 years of armed conflict. About 60% of the population is absolutelypoor; at 137, the IMR is among the highest in the world; and life expectancy at birth is48 years for women and 45 years for men, both four years less than the average for Sub-Saharan Africa. The war caused the destruction or abandonment of 31% of the

20 National Environmental Setting

country's, health centres and 45% of its schools. There are now an estimated 200,000orphans in the country.

The curTent population is estimated to be 17-18 million, including refugeesreturned from neighbouring countries, and growth is expected at about 2.7% per annum.Most significantly, between 1980 and 1993 the combined effects of war and droughtresulted in a substantial increase in the proportion living in urban and peri-urban areas --from 13% to 18% in the north, from 11% to 17% in the centre, and from 27% to 40% inthe south -- without a parallel increase in non-agricultural employment opportunities.At the same time, urban infrastructure was designed for much smaller populations andurban government capacity to meet the burgeoning service requirements of a fastincreasing population is seriously inadequate. Thus, in most urban areas, water supplyinfrastructure, storm sewers and sanitation facilities are deteriorating, seriously deficientand/or lacking. This, combined with widespread poverty, is having substantialenvironmental and health impacts. Nearby fuelwood resources are disappearing and, inmany cities, cholera, hepatitis, typhoid, diarrhea and malaria are widespread withconsequent effects on morbidity and mortality.

Assessment of Urban and Peri-Urban Water Supply 21

4. ASSESSMENT OF URBAN AND PERI-URBAN WATER SUPPLY

4.1 INTRODUCTION

The assessment of urban and peri-urban water supply is divided into several sections.First of all, issues comnmon to all city programs are discussed (Section 4.2), andrecommendations made which pertain to all the city programs. Next, the five cityprograms are analyzed separately (Section 4.3 through 4.7). Recommendations aremade as they are needed and then summarized for ease of reference. As appropriate,each of the city assessments refers back to the common issues presented earlier andforward to the recommended Environmental Management Plan presented in Section 7.

The Environmental Management Plan is a vital component of this assessment,and of efforts to achieve an environmentally-sensitive completion of the NWDP. Itpresents common approaches necessary to the location, planning and design of projectfacilities; to their construction and operation; to compensating and resettling peopledisplaced by the project; and to training project participants in environmentally-appropriate behaviour.

Thus, readers concemed with only one city will refer to the conmnon issuesmaterial (Section 4.2), the material concerning that city (Section 4.3, 4.4, 4.5, 4.6 or4.7), and the environmental management material (Section 7).

4.2 ISSUES COMMON TO ALL CITIES/TOWNS

4.2.1 Public Taps, House and Yard Connections, and Sanitation

Concerning the choices to be made among providing house connections, yardconnections and/or public taps while refurbishing and extending the distributionnetworks, we strongly recommended as guiding principles that:

1. House connections should not be provided unless and until appropriate andadequate facilities are available to handle water- and excreta-related waste; and

2. The NWDP switchfrom providing house connections to providing, as afirstpriority, public taps and, as a second priority, yard connections.

There are three key arguments for these strategic recommendations:

1. People with house connections tend to use considerably more water than people withaccess to only yard conmections or public taps. Without adequate solutions to wastewater disposal in place, such high levels of water consumption will exacerbate currentsanitary problems in the communities. As is well known, not only are water supplysystems in the five cities in poor condition but so are the sewerage, drainage andwaste water treatment systems. The NWDP would as originally planned, increasewater supply without parallel sanitary improvements, though the latter now is

22 Assessment of Urban and Pen-Urban Water Supply

planned to be attended to in a closely-following project. Nonetheless, the potentialfor increased risks to human health from water and excreta-related diseases due toinadequate sanitation must not be ignored.

2. Urban household surveys have shown that as much as 90% of the urban population arepoor or ultra-poor. Thus, they have very limited purchasing power and will mostlikely be unable to pay for the costs of house and, perhaps, yard connections.Emphasizing public taps over yard and house connections will represent a better fitbetween supply and demand, and will probably improve the prospects for costrecovery. The Beneficiary Assessment study will intentionally clarify whether the costof sustainable standpost management will match the communities ability andwillingness to pay.

3. A larger share of the urban population will get access to safe water if the number ofpublic taps is increased and the plans for house and yard connections are reduced.This implies fulfilrnent of basic needs for more people at the same level of total costor the sarne level of total water usage, and is in line with the national water policy.

4.2.2 Beneficiary Involvement in the Location, Planning and Design of NewDistribution Systems

We recommend strong participatory involvement of the beneficiaries duringplanning and establishment of the distribution system. This is important because:

1. There is large variation among neighbourhoods and towns in terms of purchasingpower, current access to water, alternate sources of water, physical conditions,community structure and organization, etc. The density and location of public tapsshould thus be determined with inputs from the beneficiaries. This will result in abetter fit between demand and supply.

2. Involvement of the beneficiaries in this way will provide a higher degree ofidentification and responsibility when it comes to establishing and implementing asystem for the physical and financial management of the water supply system. This islikely to result in a more secure water supply and reduced operation and maintenancecosts.

3. Health and sanitation education may be provided at the same time by the relevanthealth authorities and projects in collaboration with the present project.

We recommend that the Beneficiary Assessment (BA) to be carried out as part ofthe Bank's NWDP preparatory work include such participatory involvement, and becarried out in all-five urban/4eri-urban areas involved in the project. Furthermore, theBA should produce a set of design criteria, tailored to each community, to guide theplanning, design and implementation of the refurbished/expanded distribution system.These criteria should specijy, for example, the maximum number ofpeople/families servedby each connection: the maximum distance anyone would need to travel to a public tap,


how physical andfinancial management of the public taps should be conducted, the hoursof service, etc.

In this connection, we also recommend that an incentive system be establishedsuch that it does not pay to damage water meters. The beneficiary assessment should alsoinvestigate this issue.

4.2.3 Routing of Distribution Systems

Routing of the expanded distribution and reticulation system in urban and peri-urbanareas will probably lead to conflicts with existing houses and gardens, even if thepipelines should mainly follow roads and foot-paths. Destruction of crops, dependingon the season, and some resettlement of families will likely be necessary. Werecommend that provisions for compensation and resettlement be included in the projectplan and budget, as discussed in more detail in Section 7, the EnvironmentalManagement Plan.

4.2.4 Sewage and Waste Water Colection and Treatment

'Refurbishment and/or extension of the sewage and waste water systems for the fivecities have yet to be planned. It can only be assumed that they will be combinedsystems for sewage and storm water, with overflow to storm water canals/pipelinesdischarging to water courses or the sea during heavy rains. Where sewers already existsor where their rehabilitation/extension proves preferable to alternative on-sitesolutions, we recommend as a general guide that:

1. During the dry season, wastewaterfrom sewered areas should be transportedaway from the city and to appropriate treatment facilities where available andaffordable, either through the reticulation system or through the regular emptyingof septic tanks.

2. Siting of the watercourse/sea outlets from treatment plants be based on hydrologicloceanographic investigations into their capacity to receive, disperse and naturallypurify the waste water.

3. Treatment, outlet requirements and eventual reuse of effluents be evaluated togethersince the choice of sewage treatment methods will influence the outlet and reuserequirements and vice versa.

4. Provided suitable land areas are available, preference should be given to the use ofwaste stabilization ponds (oxidation ponds) providing sedimentation and biologicaltreatment, and with additional treatment required in case effluents will be reused.

5. Coarse grates, manually cleaned, be used to screen sewage and wastewater priorto its entering thefirst pond. Overflow arrangements to stormwater channelsshould be designed in such a way as not to allow passage of suspended andfloatingobjects.

The above recommendations are based on existing situations as observed by theTeam in the five cities. They should become part of a phased strategy to be designed

24 Assessment of Urban and Peri-Urban Water Supply

with the long-term objective of eventually having full treatment of all seweredwastewater and adequate reuse or disposal of the effluents.

4.2.5 Impacts on Aquatic Life

Little is presently known about the fish species and aquatic biodiversity in the riversaffected by the NWDP, except that there are relatively few species living there. Speciesmay vary from one river to the other. From 20 to 33 species have been identified insome rivers. One of the most knowledgeable people in Mozambique on freshwaterfisheries is of the view that there would be minimal effects on fish populations from thetype of water supply projects comprising the NWDP (Custodio Boane, UEM, pers.comm.).

4.2.6 Socio-Economic Dimensions

There is no question that improvement and expansion of water supply and distributionsystems in urban and peri-urban areas meets a real and urgent need. Availability ofclean water contributes to people's health by reducing the risks of catching waterbomediseases and to improving hygienic standards. On the other hand, increasing watersupply without at the same time improving sanitation facilities will, as mentionedearlier, lead to increased health risks.

Water supply also has important economic impacts. Unreliable water suppliesfrom the water companies have led to illegal, secondary water markets where poorergroups of the population pay much higher prices for water (up to 50,000 Mt/m3) than themore well off with house connections and water tanks (up to 4,500 Mt/n3). This projectis intended to result in increased quantities of safe water reaching an increasing numberof families in more reliable supply systems and will probably lead to a reduction, if notelimination, of secondary water markets with lower prices. This is unquestionably asignificant benefit which will be enhanced if the project emphasis is shifted to publictaps from house and yard connections, as recommended above.

Moreover, many industries and other enterprises depend on a reliable watersupply. The availability of water is an important factor in investment decisions. In thecase of Quelimane, Nampula and Pemba in particular, the unreliable water supply hasalready discouraged new investors and reduced the profitability and number ofemployees at existing enterprises. Thus, investments in these towns should besubstantially encouraged as a result of the project.

Project investments will require the involvement of a number of contractors andvarious skilled and unskilled workers in Mozambique. Surveys of labour markets in thecities indicate exceptionally high rates of unemployment and underemployment (DNE1994). In all cities, companies exist which are capable of executing most of theconstruction work for the rehabilitation and expansion of water systems. Moreover,with the location of the capital and major centre of political and economic power in thesouth of the country, people from the north feel certain resentments towards people from


the south. We strongly recommend that local companieS and workers be contracted tocarry out project works instead of importing them from other parts of the country (i.e.Maputo). This will have several positive socio-economic impacts.

One of the main justifications for the project is the rapid growth of the urban (i.e.peri-urban) population. One third of the rural population has moved into the cities inrecent years. Until 1992, this migration was primarily caused by the war. Today thisbias away from rural habitation seems to have become more permanent mainly due tolack of infrastructure and the difficult economic conditions in rural areas, and to thevicious cycle many urban peasants find themselves in. Although formal employmentopportunities in towns are hard to come by, the informal sector (petty trade and crime)offers better income opportunities in urban than in rural areas. Migration and settlementis costly, and people may thus be trapped in places from where they would otherwiselike to move.

The GoM's stated policy is to reverse the migration pattern and promoteresettlement in rural areas. The donor community is following suit with ruralinvestment programs, although presently on a limited scale. To give priority toinvestments in urban and pen-urban areas, as the NWDP does, may seem to contradictthis policy. The picture is, however, more complicated, as there exist a complexity ofreasons for rural-urban migration, and for the difficulties in establishing a new urban-rural migration pattem. Appendix B discusses some of these issues further.

The NWDP will have significant benefits in the urban and peri-urban areas ofMozambique. This is undeniable. At the same time, investments in urban and peri-urban areas should be complemented with investments in water supply systems andother infrastructure in near-city areas having agncultural and other investmentpotentialfor rural-based production (with market outlet potential). Such investmentswill assist in encouraging people to relocate out of the major cities/towns. Through itsRural Water and Sanitation component, the NWDP makes an important contribution tothis effort. Other initiatives should follow.


4.3 MAPUTO

4.3.1 Existing Water Systems

Institutional Framework and Other Projects. Maputo is the largest urban area and thecapital of the Republic of Mozambique. It is located on the south coast at Baia deMaputo at the joint mouth of the Matola and the Umbeluzi Rivers (Figure 4.1). Water issupplied by Aguas de Maputo (AdM), the only formally registered state water companyin Mozambique. By law, AdM is subject to supervision by the City Council but inpractice it is supervised by DNA since most new investments and other support isdonor-funded and channelled through DNA, and water tariffs are set by the centralGovernment.

Sewerage and storm and waste water systems are the responsibility of theCouncil. However, the institutional entity designed to operate and maintain thesewerage system, Sangest, has never been formed and the responsibility for sanitationstill rests with the Council's Works Department. There is no formal co-operationbetween AdM and the Works Departnent but AdM is discussing extensions andprinciples for water supply with the department, and the two institutions seem to be ongood tenns.

Through the years AdM has been supported by a number of projects. A Bank-funded project to rehabilitate and extend the water distribution system is nearingcompletion. As well, a number of projects supported by the Caisse Francaise deDeveloppement have been completed, are on-going or are being negotiated (WorldBank 1996b). These include rehabilitating the intake and treatment facilities, upgradingthe clear water transmission mains, extending the distribution network, updating thewater master plan for Maputo, and institutional strengthening and technical support.

Water Source. Treatment. Transmission and Distribution. Raw water for Maputo ispumped from above a weir on the Umbeluzi River near Boane about 30 km from thecity (Figure 4.2). Flows above the weir are regulated by the Pequenos Libombos Damabout 10 km upstream, commissioned in 1988. The dam was designed to provide aminimum regulated flow of approximately 9 m3/s in the river, to secure sufficient flowat the intake, but the minimum discharge from the dam is currently set at 4 m3/s. Thedam and its operation, including sufficient flow in the river at the water intake, is theresponsibility of the newly-formed regional water administration of ARA-Sul. AdMtakes over responsibility for the water supply at the intake to the treatment plants. Ahydrological study of the Umbeluzi River basin is being undertaken by a Frenchconsulting company under the French project mentioned above.

The raw water is treated in two plants, an old one just refurbished and a newerone commissioned in 1991, having a combined capacity of 144,000 m3/d. Both plantsare functioning well but due to clear water transmission inadequacies, total production isrestricted to about 100,000 m3/d. However, the dosing systems are said not to be suitedfor the low quality chemicals available in Mozambique, and batch dosing with HTH hasbeen required during frequent breakdowns. Sludge, back-wash water and sedimentsfrom the treatment plants are discharged back to the river downstream of the weir.


Figure 41: The Maputo Region

Legendo IntaeskPumping station*WeilD Treatment workso Reservoir* Dam site

,\/ Ralway// Main Road

Transmission mainA River

Remno Gar/a /

Arr.

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00

I~~~~~~l >

i~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~i

0 0 0 \ ~~~~~~machava t/Si

i 2 g ~~~~~Mato - |Ca~~~~~~~~~~~

ou \ 7 ,/ J * |Legend( Intake/Pumping station

*Wellii Treatment workso Reservoir

*Dam site

// XaRallway|\/ Main Road

Transmission mainRiver


A third.treatment plant, with a capacity of 72.000 m3/d, is presently in preliminarydesign by a French consulting company under French funding. The consultancy alsoincludes a feasibility study for a possible raw water pipeline directly from the PequenosLibombos Dam to improve raw water quality. AdM indicated that this would probablynot be cost effective.

After treatment, water is pumped through twin transmission mains about 14 kmto the Matola distribution centre. From there, water is gravitated and/or boosted todistribution centres at Machava, Chamanculo, Maxaquene and Alto Mae. The currentbottleneck in the transmission system is a broken down booster station at the Matoladistribution centre which limits transmission capacity to the 100,000 m3/d mentionedabove. Rehabilitation, or more probably the construction, of a new booster station andupgrading of the transmission mains to the city are reported to be included in theongoing French-funded rehabilitation program.

The piped water supply system serves the city and peri-urban areas directlybordering the city, as well as the suburbs of Matola and Machava between the watertreatment plant and Maputo city. More periphery areas on the outskirts of the city andsuburbs are not supplied by the system but rely on wells fitted with hand pumps. Thetotal number of domestic connections is some 58,000, assumed by DHV (1994) to be3/4 house connections and 114 yard connections. The number of public taps is relativelysmall, about 500 in the Greater Maputo area, almost all of them located in peri-urbanareas. The special Programa de Abastecimento de Agua aos Bairros Perifericos(PAABP) was set up in 1984 to improve the water supply in the bairros. PAABP is nowa part of a nation-wide program, and PAABP (Maputo) is operated by AdM.

The Water Markcet. The local authority in the bairros has set the price of water at 100Mt/20. litre bucket. The price charged at the standpost is thus eight times the officialAdM tariff for small consumers (5,000 Mt/r3 as against 600 Mt/r 3). The higher pricesare paid by the poorest groups of the urban population. In bairros with morepronounced water shortages, prices at the standposts are even higher (200 Mt/bucket).In these bairros the pressure is low and water supply is often interrupted. Women fill200 litre bins and sell water to their neighbours. Residents of the bairros should,however, be able to register for obtaining water at a fixed rate of 3,000 Mt/month,regardless of the quantity actually consumed. Residents also complain about the profitsmade by the managers of the standposts and question where the profits end up. TheCity Council, local authorities and AdM are meeting regularly to resolve currentproblems and intend to formalize their cooperation with a contract.

In suburban areas such as Polana Canico a secondary water market has evolved.Water is only supplied between 4:00 and 9:30 am. People will buy water fromneighbours who have a private connection at lower cost than that at standposts.Typically a household of five will pay 5,000 Mt/month.

Sewerage Systems. A combined sewerage system for discharge of wastewater andstormwater from Maputo city centre was constructed between 1948 and 1973, resultingin a system totalling 100 km in length This combined storm water and sewerage systemdischarges to the sea and the Infulene River. Another system separating sewage and


storm water was planned and implemented with Dutch assistance in the 1980s whichconveys most of the sewage parallel to the storm water system to lagoons in the Infulenevalley, west of the city Centre, and then to the river, which discharges into the shallowBay of Maputo. Sewage from the eastern part of town is pumped to this system, onlyoverflowing to the drainage system during heavy rains.

The lower part of town, the Baixa, has a combined system which discharges to theharbour without treatment. The last investments in sewerage were made in 1990. Manybuildings in the city centre are not connected to the system because the internalplumbing ends up below the sewer level. A large number of septic tanks withsoakaways are still in operation. Emptying of septic tanks is undertaken by the CityCouncil or by private contractors against payment. Contractors are expedient butexpensive. The Council has old equipment and little capacity, and it is thus difficult toobtain their services.

4.3.2 Current Environmental Situation

Water Source. Treatment. Transmission and Distribution4 The field report from the Bank's 1995 project preparation mission (WB 1995) has an

outline of hydrological characteristics and potential conflicts with regard to the use ofwater, and this will not be repeated here. A discussion of the environmental aspects ofwater resources management is given in Section 4.3.4 below, and again in Section 6.

Since the construction of the Pequenos Libombos dam, the water source hasbeen reliable, allowing a minimum flow of 0.6 to 0.7 m3/s downstream of the intake forthe Maputo water supply. As mentioned earlier, an investigation is going on to establishthe real minimum flow which can be secured from the dam and below the intakes. Theminimum ecological water demand to control saline intrusion has been estimated at 16Mm3/y or 0.5 m3/s.

Traces of chemical pollution have been found in the Umbeluzi waters, and a1993 study (Chonguica 1995) indicated that fertilizers used upstream are inducingeutrofication. Pesticides were also found. Traces of lead and cadmium were detected inwater from the Calchane river discharging into the Pequenos Libombos reservoir.

At the treatment plant, the tidal range in the river downstream of the weir is attimes up to 1 metre. Sludge and backwash water are discharged to the river below theweir along with undissolved sediments from the lime saturators. This arrangementresults in large quantities of aluminium and calcium being mixed into highly turbidwater which is used for irrigation and supports fish -caught for consumption. This couldresult in negative impacts on the aquatic environment and human health.

Water Quality Consumers and HealthThe distribution system is said to supply clean water complying with WHOrequirements 80% of the time. However, water is supplied only a few hours a day, thusleaving the system empty and non-pressurized most of the time. The prevailing sanitarysituation (sewerage, drainage) in the supply area is not good, and very bad in some areas


with flooding septic tanks which are not emptied and clogged soakaways. The situationis particularly bad during heavy rains. Since water supply, particularly houseconnections, creates waste water, the sanitary situation is such that there are high risksof leakage of contaminants into the pipes through cracks, bad joints and during repairs.This situation is probably the cause for the polluted water supplied 20% of the time, andmust be considered as a significant adverse effect of the present water supply system.

Accumulation of rain water occurs naturally in depressions that altemate withthe dunes in the pei-urban areas. These depression pools of residential waste and rainwater lead to the increase of the incidence of malaria in the rainy seasons. Previoussurveys indicate that also the ground water of some bairros is contaminated by nitratesand is unsuitable for human consumption. The occurrence of waterborne diseases hasbecome more frequent in the Maputo area, such as an increase in the index ofconterminous diarrhoea, epidemics of cholera, and incidences of malaria.

Receiving WAlthough a large part of the sewage produced in Maputo is piped and treated beforedischarge to the bay, much is also not being treated, particularly during the wet season.At times of heavy rain, the sewerage system overflows to the storm water system, streetsare flooded, and the sewage treatment facilities are overloaded. The bay and harbour ofMaputo are considered heavily polluted, a situation which must partly be considered anadverse effect of water supply in combination with an inadequate sewerage system.

4.3.3 Project Description

SUpIp and Demand ProiectionsThe Provincial Towns Water Sector Study (DHV 1994) projected a population increasefor Greater Maputo to about 1.4 million in 1997, 1.7 million in 2002, and 2.7 million atthe end of the planning period, 2017. The entire population is expected to be suppliedfrom the main piped water supply as it is extended through the planning period, withabout 50% coverage in 1992 and 75 % in 2002. The percentage of house and yardconnections is projected to increase from about 30% today to 75% in 2017, and non-domestic water consumption is expected to decrease from about 55% of domestic use toabout 30% during the planning period. Unaccounted-for water (UfW) would be reducedfrom today's approximate 40% to a modest 20% early in the planning period. Based onthese assumptions, DHV (1994) projected that the average daily water demand in thesupply area will increase to about 132,000 m3/d in 1997, and to 439,000 m3/d in 2017,all to be supplied by AdM.

Further, DHV (1994) estimated that a maximum of 240,000 m3/d can beextracted from the Umbeluzi River. DHV concluded that supply from the UmbeluziRiver will become inadequate around 2006 and should then be augmented by divertingwater from the Incomati River near Moamba northwest of Maputo to the Umbeluzi viathe Matalha and Movene Rivers for 4 to 6 months a year. During the other 6 to 8months, water should be drawn from the Pequenos Libombos reservoir. Alternativelyor additionally, new ground water sources could be developed north of Maputo betweenPateque and Manhica. Both options for additional water would require detailedhydrological studies to determine their feasibility.


NWDP InvestmentsProject investrnents proposed by the Bank for Maputo (WB 1996b) are shown in Figure4.3. In addition to hydrological studies to determine the feasibility of developing newwater sources from the Incomati River and/or ground water resources north of the city,the project would repair, upgrade and/or extend the existing supply, treatment anddistribution system based entirely on raw water withdrawals from the Umbeluzi River.

Project activities on which this EA focuses, with a distinction between thosewhich may cause significant and minor effects, are:

Significant environmental effects:* increase surface water abstraction from Umbeluzi River

Minor environmental effects:* new intake and treatment plant* extension of distribution network

4.3.4 Environmental Assessment of the NWDP

Location. Planning and Design: Water Source-DHV carried out an investigation of the existing and the long tern potential waterresources for urban use and irrigation for the Greater Maputo area and the Umbeluzi-Incomati River basins (DHV 1994, Maputo: Annex IV). Potential ground waterresources were also assessed and an economic evaluation of the potential use of (part of)the resources for irrigation purposes was undertaken, outlining a number of possiblescenarios.

As mentioned in section 4.3.3, DHV estimated the maximum amount of waterwhich may be extracted from the Umbeluzi River by AdM to be 10,000 m3/h (88Mm3/year), which corresponds to the projected demand in the year 2006. This assumesa maximum consumption for irrigation purposes of 44 Mm3/year which corresponds to alimit of slightly less than 4,000 ha of irrigated land. At present, the irrigated area isreported to be in the range of 1,400 ha (of which only half is operational) whereas soilsurveys have indicated an irrigation potential of 10,600 ha in the upper Umbeluzi, 2,600ha in the lower Umbeluzi (near Boane) and 11,000 ha along the Movene River (DHV1994). When the use of the water resources for irrigation purposes in Swaziland(presently 10,000 ha) are also included, it is very clear that there are competing demandsfor water from the Umbeluzi River for irrigation and urban use in Maputo, and thataltemative sources must be developed to meet at least part of the future demand fromAdM.

The principal environmental concerns with regard to the use of water and thewater balance in the Umbeluzi basin relate to:

1. The minimum flow required downstream of the Maputo water intake to controlsalinity intrusion and protect other ecological functions;

2. Proposed future transfers of water from the Incomati to the Umbeluzi River toaugment Maputo raw water supplies; and


3. Monitoring and management of the rninimum flow being delivered across the borderfrom Swaziland.

Figure 4.3:Project Investments in Maputo

Hydrological Set up monitoring program XXX XXXinvestigations (1.01) for Calichane and Movene

Rivers. Study joint use ofUmbeluzi and Incomati riverbasins. Additionalhydrogeologicalinvestigations for thePateque-Manhica area.

Leak reduction program Repair/replace bulk meters. XXX XXX XXX(1.06) Establish district metering.

Rehabilitate/replace 7,500service connections andreplace 15,000 faulty meters.

4 Repair/replace 100 km ofdistribution pipes. Upgrade20 km of primarydistribution network.Recover 10,000 illegalconnections.

New service connections Connect 13,500 HC, 1,000 XXX XXX XXX XXX Xxx(1.07) YC and 900 PT

New intake and Construct new intake. xxx XXX xxxtreatment (2.01/2) Install 3 pumps of 2,500

m3/h each. Construct newtreatment plant 96,000 m3/dcapacity.

Distribution (2.07) Extend distribution network: Xxx XXXMahotas and other areas

From an environmental viewpoint, there are several dimensions to the questionof transfering water from the Incomati via the Movene to the Umbeluzi River. As withthe Umbeluzi, competing water demands on the Incomati River for irrigation and humanconsumption, and maintaining a variety of downstream ecological functions, must beconsidered. As well, the environmental consequences of increasing flows in theMovene River, beyond what it and its riparian water dwellers and users have evolved tohandle, must be assessed.

Regarding minimum flows below the Maputo intake, the EA team was unable todetermiine on what basis the minimum ecological flow of 16 Mm3/y or 0.5 m3 /s wasestimated. Moreover, this "ecological water demand" appears to be only for the controlof saline intrusion. The preservation of other ecological functions (e.g. dispersion andnatural purification of waste waters, including those from the Maputo water treatment


plants (see below); preservation of riparian habitats; flushing of suspended sedimentsthrough the harbour) does not appear to have been included. It is vital that goodhydrological monitoring at the intake, and thorough analysis of minimumflowsrequired to meet domestic, industrial, irrigation and a variety of downstreamecological demands, be carried out before maximum withdrawals available from theriver to supply Maputo are settled. Only with this information in hand will analysis ofthe requirements for firm minimumflows from Swaziland and/or transfers from theIncomati River be possible.

Together with the outstanding need to negotiate shared water arrangements withSwaziland and South Africa, the above concerns highlight the need to develop co-ordinated regulating regimes for the various river basins and major water usersinvolved. This will be a task for ARA-Sul in collaboration with the new unit forinternational river basins in DNA.

The issue of minimum flows in the Umbeluzi below the Maputo intakes should bea key factor in the design of hydrological investigations planned under the Maputo sub-project of the NWDP. Moreover, this and the Incomati and international rivers issuesshould be addressed by the relevant Water Resources Management components of theNWDP discussed in more detail in Section 6 of this report:

S Section 6.2: Management Development Plan for ARA-Sul

* Section 6.4: Strengthening of Management of Shared Water Resources, and* Section 6.5: Joint Incomati Study -- Supplementary Work in Mozambique.

Location. Planning and Design: TreatmentDisposal of sludge, backwash water and undissolved sediments from the treatment plantinto the river is probably causing negative impacts on the aquatic environment andhuman health downstream, though the reduced water quality and its impacts have notbeen studied. Water quality downstream of the treatment plant should be monitored,particularly during lowflows, to determine if contaminants from the treatment processare creating significant problems. If they are, planningfor increased treatmentcapacity at the present site should include provisions for the safe disposal of thesewastes into a lagoon or landfill.

Location. Planning and Design: Transmission. Storage and DistrbutionAlong the clear water transmission mains between Boane and Maputo, some informalsettlements have developed on top of and along the pipelines, and some resettlementwill be necessary. Some of the most likely locations are:

* About 100 refugee houses remain along the transmission main between Matola andMaputo, adjacent to the highway and in from the Cement Factory. The area isrelatively low and wet and the houses are built on an artificial elevation created forthe pipeline. Because of the high pressure in the line, any ruptures would representserious risks to the safety and lives of these people.

* The area next to Mahotas, where a new distribution centre is planned, is denselypopulated. Construction of a distribution tower will necessitate the removal of anunidentified number of families.


Upgrading of the transmission main and the new distribution centre are proposedcomponents of French funded projects, and not parts of the NWDP. Environmental andresettlement issues in this regard are thus outside the scope of this EA study. The Teamwould however, make the following recommendations to the Maputo City Council andAdM:

Families living on the transmission main and in the area of the new Mahotasdistribution centre should be resettled in accordance with existing regulation andpractice. This matter will be particularly important if the planned upgrading of thewhole transmission main goes ahead under French funding.

ConstrucimnNo construction impacts were identified which cannot be satisfactorily managed throughmeasures incorporated in the environmental monitoring and management plan (Section7.3).

OperationApart from increased water abstractions from the Umbeluzi River, no operation impactswere identified which cannot be satisfactorily managed through measures incorporated

4 in the environmental monitoring and management plan (Section 7.4). Increasedwithdrawals of water from the river will result in lower flows downstream of thetreatment plant, exacerbation of what impacts may be caused by waste discharges fromthat plant, and other as yet unidentified water quality, quantity and related ecologicaland human use effects. These concerns are discussed further in Section 6, Assessmentof Water Resources Management Proposals.

The Water MarkeWith an expanded network, improved quality and regularity of the supply, prices forwater should come down in the bairros as compared to today's prices. It is, however,necessary to review and improve the organization of distribution. The collapse of theGrupos Dinamizadores (previous local authority) in the bairros has caused anadministrative vacuum at the grass roots organizational level. The local authoritysubstituting for these groups lacks the financial, administrative, political and legalauthority and autonomy necessary to set priorities, make decisions and exerciseadministrative control.

For the organization ofpublic participation in connection with the extension ofthe distribution system, new partner organizations should be found, such asassociations of inhabitants and women's organizations.

4.3.5 Analysis of Alternatives

The principal alternatives which pertain to the NWDP, concern sources of future rawwater supply for Maputo. As discussed above, the two altemative sources underconsideration are the Incomati River and groundwater in the Pateque-Manhica areanorth of Maputo. DHV (1994) indicated that further investigations are required todetermine the practical and economic feasibility of these alternatives.


Hydro(geo)logical investigations in support of these feasibility studies are planned aspart of the NWDP.

It will be essential that these feasibility studies include environmentalassessment to evaluate the environmental costs and benefits of each alternative, and toinclude these factors in any comparison of and selection between the alternatives.

4.3.6 Summary of Recommendations

1. It is vital that good hydrological monitoring at the intake, and thorough analysisof minimum flows required to meet domestic, irrigation, industrial and a varietyof downstream ecological demands, be carried out before maximum withdrawalsavailable from the Umbeluzi river to supply Maputo are settled. Only with thisinformation in hand will analysis of the requirements for firm minimumflowsfrom Swaziland and/or transfers from the Incomati River be possible.

2. The issue of minimumflows in the Umbeluzi below the Maputo intakes should bea key factor in the design of hydrological investigations planned under theMaputo sub-project of the NWDP. Moreover, this and the Incomati andinternational rivers issues should be addressed by the relevant Water ResourcesManagement components of the NWDP discussed in more detail in Section 6 ofthis report:

* Section 6.2: Management Development Plan for ARA-Sul* Section 6.4: Strengthening of Management of Shared Water Resources,

and* Section 6.5: Joint Incomati Study - Supplementary Work in

Mozambique.

3. Water quality downstream of the treatment plant should be monitored,particularly during lowflows, to determine if contaminantsfrom the treatmentprocess are creating significant problems. If they are, planning for increasedtreatment capacity at the present site should include provisions for the safedisposal of these wastes into a lagoon or landfill.

4. For the organization ofpublic participation in connection with the extension ofthe Maputo distribution system, new partner organizations should be found,such as associations of inhabitants and women's organizations.

S. It will be essential that the feasibility studies into future alternate water sourcesfor Maputo include environmental assessment to evaluate the environmentalcosts and benefits of each alternative, and to include these factors in anycomparison of and selection between the alternatives.


4.4 BEIRA


Institutional Framework and Other ProjectsBeira is the second largest town in Mozambique and the capital of Sofala Province. Thewater system supplies Dondo, Manga and Inhamizua as well as Beira and is run by theCompanhia de Aguas de Beira (CAB), originally a shareholder company owned by theCity Council and anonymous (Portuguese) individuals. At independence, thePortuguese left and the company was nationalised and turned into a state enterprise.This status, however, has never been formalised and CAB has maintained its legalcompany structure.

CAB operates independently from the City Council (although the City Councilis the majority shareholder). In practice DNA supervises CAB through the SofalaProvincial MOPH office by channelling donor investment assistance and the setting ofwater tariffs. Relations between the City Council and CAB are very strained due toproblems with managing the Beira sewage system and to serious management problemswithin CAB. CAB was previously responsible for sanitation, but the responsibility wastransferred to the Council. Despite prolonged investment support from a Dutch--financed project, the Council has been unable to execute proper maintenance of thesewerage and storm water systems. The Council attributes the lack of maintenancepartly to CAB which has for more than a year refused to transfer receipts of an agreed15 % share of the water fee to the Council to cover maintenance costs of the seweragesystem.

The Finnish Embassy in Maputo has concluded that a recently completedFINNIDA project for institutional support to CAB was a failure due to misappropriationof funds; lack of policies, strategies and tariff structure; and unqualified managementwhich did not follow established regulations. FINNIDA will, however, consider somebridging support to CAB until commencement of the Bank-funded NWDP.

The third institution involved in the Beira water supply is the MozambiqueSugar Estate (Acucareira de Moqambique). In the early 1970s a flood destroyed theoriginal CAB water intake in the Pungue River and CAB has since been dependent onthe sugar estate intake pumps and irrigation canal for its raw water supply. The estate iscompensated in an agreement between the parties with free potable water. Relationsbetween CAB and the estate are also strained due to salt intrusion in the river and theintake, and consequent interruptions to water supplies (see below).

Water Source. Treatment. Transmission and DistributionBeira obtains its raw water from the Pingue River about 75 km from the river mouth(Figure 4.4). Minimum flow on the Pungue is estimated to be 3.9 m3/s (337,000 m3/d)(100 year return period). At the intake works, the river is still tidal and, during the Mayto October period of drier years, saline intrusion can affect water quality and limitpumping. Salt intrusion during low flows may reach 95 km from the river mouth.


Figure 4.4: The Beira Water System

Legend

(a Intake/Pumping stabonWell

PropoDsed i<&P C: Treatment worksProposed ~~~~~~~~o Reservoirnew intale * New intake

\l _ Railway,vMain RoadTransmission main

RiP u River

Nungue Dondo t

1 ~~~~~~Inhamizua

>~Beira

\ h~~~~~~~~~~~~~~~pr

ts~~~~i Buziw0


Water is pumped from the river by the Mozambique Sugar Estate into its 6 kmirnigation channel. A 1.5 km branch channel supplies the CAB intake pumping stationwhich feeds two treatment plants with combined capacity of 30,000 m3/d. A new intakepumping station on the same branch channel, and a new treatment plant (cap. 30,000m3/d), both Italian-funded, are almost complete and are said will be finished by theNWDP. Average water production from the existing plants is about 19,000 m3/d.Waste flows from the treatment process are discharged back into the branch channelbeyond the CAB intake.

The estate's river intake is presently undergoing a complete rehabilitation withnew intake and outlet pipes and eight new pump-sets to increase capacity from 5.6 to7.2 m3/s. The main irrigation channel is subject to siltation and is regularly dredged bythe estate.

Treated water is pumped 14.2 km to reservoirs at Mezimbite then gravity-fed 30km (via Dondo and Inhamizua) to the Manga distribution centre. Here it is pumped intoa tower for local distribution and further transmission to the Munhava then Beiradistribution centres. Almost complete are a new pumping station at the treatment siteand a 52 km transmission main to Munhava. These too are also said will be completedby the NWDP.

The people of Beira and its bairros get their water from wells, private house oryard connections, standposts, through water vendors and from neighbours (Ojanpera1993). About 45% of the population is served primarily by CAB, 2/3 of which have ahouse/yard connection and 1/3 depends on standposts (DNE 1994). In 1992 there were74 standposts in the bairros. By 1995, the number had increased to 112 but only 63 arenow in service, each serving an average of about 800 individuals. CAB has created aspecial Board for organising payment at the standposts. The Board operates a net oflocal managers made responsible for collecting water fees. They are selected afterconsulting people in the area and their local leaders. Users pay a fixed fee per family atthe end of each month.

The Water MarkeAn important source of water in Beira is the secondary market developed to cope withthe inability of CAB to secure a timely supply of water. It covers about 20 % of thepopulation (Ojanpera 1993). Prices in 1993 were found to vary between 5,000 to10,000 MtVrn3. It was not possible to identify current secondary market prices but theyare a multiple of the official CAB tariffs and vary considerably depending on theservices included - e.g. whether water is brought by the vendor to elevated floors ofhigh rise buildings, or if the buyer goes to the vendor. Another variable is therelationship (kinship) between buyer and seller. Anecdotal information indicates thatthey may reach 50,000 Mt/m3.

Sewerage SystemsThe only piped sewerage system in the supply areas of CAB is in the city centre andserves about 30% of the population. Operation and maintenance of the system is theresponsibility of City Council, but neither the customers nor the water company arepaying any contribution for the services. The system is comprised of about 50 km of


reticulation, 9 km of main collector pipelines, 11 lift stations to deliver sewage to themains, and four mains pumping stations to discharge the sewage to the Pungue Riverestuary without any kind of treatment. Outside the city centre, septic tanks withsoakaways and pit latrines constitute the main sanitary facilities.

The Urban Infrastructure Programme, financed by the World Bank, and aprogram funded by the Dutch government, have rehabilitated parts of the piping systemand all pumping stations in recent years. According to information obtained during thevisit, many pumps have broken down after rehabilitation but at least one pump isworking in each station.


Water Source, Treatment. Transmission and DistributionBeira's raw water supply is totally dependent upon the continuous operation of the riverintake owned and operated by the sugar estate, an undesirable dependency. The mainproblem is the salt water intrusion at low flows which causes salt contents far above thelimit which is acceptable for the irrigation of sugar cane (140 mg/litre). When thisoccurs, normally during the early August to mid-December period, the estate stopspumping river water to prptect its land and crops from salination. Although the water isstill suitable for human consumption (WHO recommended maximum 250 mg/litre),CAB is consequently forced to shut down the city water supply.

This interruption causes serious adverse impacts in Beira. Only last year theintake was closed for 10 days in succession. By strict rationing of the water in thechannel and the reservoirs, some supply was possible for three days, leaving peoplewithout water for one week. Under the circumstances, the population uses whateverwater can be found and since the sewerage system also stops functioning in thesesituations, the effects are potentially disastrous. It is strange that the new Italian-fundedraw water pumping station was located on the existing raw water channel, thusmaintaining the salt intrusion problem and the dependency on the sugar estate. Thiswas, apparently, against advice of both CAB and the City Council who wanted torestore the original river intake upstream which was washed out in the early 1970s.

At the treatment plant, sludge and backwash water are discharged back to theintake branch of the channel, downstream of the intake. The channel continues far intothe marshy flatland and the idea is that solids should settle while water should seep backto the river. As it is, the channel has silted up and, during floods or when raw waterintake to the channel is less than the pumping rate of the raw water station, heavilypolluted water flows backwards to the intake. During the site visit, two clearlydistinctive flows, one from each direction, were feeding the intake pumping station, theone from downstream being completely black. This situation clearly adds to treatmentcosts.

The transmission system capacity is adequate for the water production at thetreatment plant in operation, but not more. The leaking ground reservoir in Manga,causing loss of precious water, is aggravating the difficult supply situation. The Italian-


funded transmission line could have eased the supply situation, along with the othercomponents under the same program. Moreover, the 40 year old distribution system isin a poor state with frequent bursts in spite of extremely low pressures in the city centreand some rehabilitation and replacement works recently carried out with FINNIDAsupport.

Water Qualitv. Consumers and HealthWith water being distributed only about 7 hours per day, and sometimes not at all, thedistribution system is often empty and non-pressurised. This, coupled with aninadequate and only partly developed sewerage system, means that the waterreticulation is susceptible to contamination from pit latrines and drained or floodingseptic tanks. As the sewerage system to a great deal is dependent on sewage pumpingstations, break-down of these causes leakage and high risk of contamination of waterpipelines, with adverse impacts to human health. The EA team was not able to obtainany official statistics on the health and hygiene situation in the city and the bairros.However, anecdotal information indicate that the health situation is no better in Beirathan in other cities, and that incidents of cholera had been recently reported.

Receiving WatersAnecdotal information indicate that sewage and waste water being discharged to thePuingui River mouth without treatment is causing severe pollution of the waters and theshores along the water front. This results in health risks to everybody taking part in theharbour activities and is adversely affecting the general impression of the town andsurroundings. The pollution is possibly also having other adverse ecological effects.

4A.3 Project Description

Suply and Demand ProjectionsDHV (1994) projected the population in the supply area to increase to about 490,000 in1997 and to about 980,000 by the end of the planning period, year 2017. Only the urbanand peri-urban areas will be covered by the water supply system which means that Beiraand Manga will have full coverage in 2017 whereas the coverage in Inhamizua andDondo are estimated to be 85% and 75% respectively in the same year. Unaccounted-for water (UfW) was taken to be reduced from 40 - 50% of present production to amodest 20% early in the planning period. The present level of service, with 68% of thepopulation not covered and only 25% covered by house and yard connections, isexpected to improve until full coverage is reached in 2017 with 75% being supplied byhouse/yard connections.

Based on the above assumptions, DHV (1994) projected an average day waterdemand increase to about 21,000 m3/d in 1997 and 137,000 m3/d in 2017, all to besupplied by CAB.

NWDP InvestmentsProject investments proposed by the Bank for the Beira system are shown in Figure 4.5.They involve:

* New intake pumping station. first phase


* Local storage and pumping at Inhamizua and Dondo* Water loss reduction and metering* New service connections

In addition, it is understood that the new intake pumping station and treatment plantalmost completed with Italian funding will be finished by the NWDP (Shepherd 1996a).

Figure 4.5:Project Investments in Beira

New intake (1.03) Construct first phase of new XXX XXX XXXintake pumping station of2,000 m3/h capacity(ultimate cap. 7,200 mn/h).

Storage (1.07) Construct 2,500 rn3 ground XXX XXXlevel reservoir with pumpingunit in Inhamizua (south).

Storage (1.08) Construct 2,000 m3 ground XXx XXXlevel reservoir with pumpingunit in Dondo.

Distribution(I.10) Lossreductionand XXX XXX XXX XXXconsumer meter program.

Distribution (new Construct 2,492 HC and XXX XXX XXXconnections) (1.1 1) 4,740 YC

Project activities on which the EA focuses, with a distinction between thosewhich may cause significant effects and those for which effects are likely to be minor,are:

Significant environmental effects* increase surface water abstraction from Pungue River

Minor environmental effects* new ground level reservoirs at Inhamizua and Dondo


Location. Planning and Design: Water Source and TreatmentThe DHV report (1994) for Beira states that there is sufficient water for the supply ofBeira if this is given priority over any other uses, and if the saline intrusion problem canbe solved. However, it will be necessary to limit other uses in the fiuture as the demandfor Beira water supply increases. (Minimum annual recorded flow was 766 Mm3/y in1967-8 against projected demand of 50 Mm3/y in 2017). The National IrrigationDevelopment Master Plan (quoted in DHV 1994) recommended that the total irrigated

Assessment of Urban and Pen-Urban Water Supply 43

area should be limited to about 8,500 ha (present area of the sugar estate). Although nominimum flow requirement was specified, the estimated irrigation area limit was takinginto account the need to use available flow to push the freshwater/saline water interfacedownstream. It is not known whether possible reduction in flows across the border fromZimbabwe was considered. A new supply line from the river destinated for the town ofMutare in Zimbabwe, is under construction. Planned extraction is 0.7 m3/s, but thecapacity is actually higher.

Provided that restrictions on water use for irrigation are enforced to maintain aminimum downstream flow, the increased abstraction of water for Beira from thePungue River would probably not cause any significant environmnental impact. Thisstatemnent, however, also presupposes that a satisfactory agreement is reached withZimbabwe with regard to the shared water resources of the Puingue River. DNA and/orthe new ARA for the region should monitor water demands on the Pzingu& Riverfromirrigation and other uses in Mozambique andfrom Zimbabwe. Should these demandsplus water supply to Beira indicate potential problems with maintaining minimumflowsin the lower river, more detailed hydrological analysis should be carried out to assist inresolving competing water demands.

4 * Monitoring of salt content, evaluation of the weir option and hydrologicalstudies, as recommended by DHV (1994), have been omitted from the NWDPinvestments outlined in Figure 4.5. The recommended new intake pumping station isincluded, but its location is not specified and no raw water transmission main to thetreatment plant is included. The Bank is currently studying the downstream weir option(Shepherd 1996a). Although not specified in the investment plan of NWDP, there isevidently still some analysis to be completed before a final solution to Beira's raw watersupply, and investments under the NWDP, are settled. At this point, there appear to befive options:

1. A new river intake at the current location, no weir, and discharge of raw water intothe existing channel for delivery to the treatment plant intake. This appears to bewhat the Bank is currently proposing.

2. Option 1 but with a weir in the river.3. Option I but with a pipeline from the river intake to the treatment plant directly.

This would eliminate the need for intake pumps on the channel into the treatmentplant.

4. Option 1 but with a weir and a pipeline from the river intake to the treatment plantdirectly. This would eliminate the need for intake pumps on the channel into thetreatment plant.

5. Location of a new river intake 14 km upstream, to avoid the salt water intrusionproblem altogether, and a pipeline to the treatment plant directly.

Options 1 and 3 do not solve the salt water intrusion problem. Options 2 and 4will solve the problem both for CAB and the sugar estate if the weir can be reliably builtand operated, and if it is affordable considering both capital and O&M costs. Both theseassumptions need to be seriously examnined. Option 5, the one most desirable to bothCAB and the City Council, will very likely solve the salt water intrusion problem forCAP, but not for the sugar estate, and includes no new technology which CAB must


adapt to. -Options 3, 4 and 5 all release Beira from dependency on the sugar estate'sown pumping criteria and schedule.

It is our opinion that Option 5 should be seriously considered since it offers thesimplest technical solution to the salinity problem and releases Beira from dependencyon the sugar estate. Options involving a weir are likely to have significantenvironmental impacts, especially to fisheries and river navigation, which would haveto be assessed. The other options will have minimal and manageable environmentaleffects. However,

We recommend that a thorough feasibility study be undertaken, considering allfive supply options, before settling the final solution for Beira 's raw watersupply and the final proposed investments under the NWDP. Any optionsinvolving a weir in the Pungue River will if selected, require a separateenvironmental assessment.

Completion of the Italian-funded treatment plant must include provisions forsafe disposal/discharge of sludge and backwash water. The present self-pollutingsituation must be discontinued.

Rehabilitation of the existing treatment plants is not included in the NWDP. Thereason could be that the new, Italian-funded treatment plant will have sufficient capacityalone until approximately 2000. However, the existing treatment plants, particularly thenewer one, should be rehabilitated to preventfurther deterioration with adverse effectsand extra costs when the capacity is needed in a relatively nearfuture.

Location. Planning and Design: Transnission. Storage and DistributionThe route- for a possible new raw water transmission main has not been studied, and nospecific comments on environmental impacts are possible. However, the area issparsely populated, and significant environmental impacts from one, later two, pipelinesin parallel are not expected.

The distribution system recommended for Inhamizua by DHV (1994) has beenleft out of the NWDP. However, a local reservoir, drawing water from the transmissionline, has been constructed under Finnish funding, including also a pumping station and asmall, elevated reservoir. A distribution system would be a natural part of this program,but the extent is not known.

ConstructionNo construction impacts were identified which cannot be satisfactorily managed throughmeasures incorporated in the environmental monitoring and management plan (Section7.3).

With regard to employment, Beira is not much different from other major citiesof the country. Unemployment and underemployment rates are extremely high withmore than half of the population between the age of 15 and 59 being unemployed (DNE1994). The area also counts a large number of demobilised soldiers (100,000 in theSofala Province, 14,000 in Beira itself). At the same time, there are at least three local


companies capable of executing construction works under the NWDP: CETA, TeixeiraDuarte and COTAM.

Op2erationApart from the potential for increased sewage treatment and sanitary problemsaddressed in Section 4.2.1, no operation impacts were identified which cannot besatisfactorily managed through measures incorporated in the environmental monitoringand management plan (Section 7.4).

Receiving WatersThe increased water supply and number of connections will cause increased sewage andwaste water production, especially if recommendations in Section 4.2.1 are notfollowed. Unless extension and improvement of the water supply is accompanied byparallel improvements in the sewerage system and/or introduction of other appropriatesanitation solutions, the present untreated discharge of solids and human wastes willincrease, polluting the harbour and nearby ocean and beaches, and creating the potentialfor impacts to both the aquatic environment and human health.

Recommendations for the planning of waste water treatmentfacilities arediscussed in Section 7.2 of the Environmental Management Plan. See also Section 4.2.4.


DHV (1994) offered two alternatives for improving raw water quality, the Pfingue Riverbeing the source in both cases:

* Construction of a weir downstream of the intake to prevent salt intrusion;* Construction of a new intake where salt intrusion does not occur, 14 kn up the river

just above the tributary Dingue-Dingue River.

These alternatives were discussed above in Section 4.4.4.

DHV (1994) also mentioned developing ground water supply but this wouldonly complement the present source and is not discussed here. Also mentioned was, forthe long term, constructing a storage dam on the Puingue River at Bue-Maria. A designhas already been prepared for a large dam at this location. It is not likely that the projectwill be considered viable in the forseeable future and is not discussed further in thisreport.


1. DNA and/or the new ARA for the region should monitor water demands on thePungue Riverfrom irrigation and other uses in Mozambique andfromZimbabwe. Should these demands plus water supply to Beira indicate potentialproblems with maintaining minimumflows in the lower river, more detailed


hydrological analysis should be carried out to assist in resolving competingwater demands.

2. We recommend that a thorough feasibility study be undertaken, considering allfive supply options discussed in this report, before settling the final solution forBeira 's raw water supply and the final proposed investments under the NWDP.Any options involving a weir in the Puingue River will if selected, require aseparate environmental assessment.

3. Completion of the Italian-funded treatment plant must include provisions forsafe disposal/discharge of sludge and backwash water. The present self-polluting situation must be discontinued.

4. The existing treatment plants, particularly the newer one, should berehabilitated to prevent further deterioration with adverse effects and extra costswhen the capacity is needed in a relatively nearfuture.

5. Recommendations for the planning of waste water treatment facilities arediscussed in Section 7.2 of the Environmental Management Plan.See alsoSection 4.2.4.


4.5 QUELIMANE


Institutional Framework and Other ProjectsQuelimane is the capital of the Zambezia Province, situated on the northern bank of RioCuacua as it reaches the Indian Ocean. The water supply mainly covers the town ofQuelimane, but some standposts and other, single connections along the transmissionmain to the town distribution centre are also supplied by Empresa de Agua deQuelimane (AdQ). AdQ is a state enterprise "in creation"; it functions as anindependent company but is supervised by DNA through the Zambezia ProvincialMOPH office. There are no formal connections between AdQ and the Quelimane CityCouncil. Co-operation with the city health service is limited to exchange of biologicaltest results from water taps and there are no dialogue on health problems.

Other projects in the area include a German-funded manpower developmentinitiative within AdQ as an emergency measure. Fundacao Eduardo Mondlane issponsoring a sanitation project in the peri-urban areas. PRONAR, the Rural WaterProgram, is constructing wells in the Quelimane area. In the near future, the NationalRoads Directorate will begin to rehabilitate and extend the main road along thetransmission main from Quelimane via Nicadala, and passing Licuare, with financingfrom the Bank through the GoM National Roads Program.

Water Source. Treatment. Transmission and DistributionThe original and main water source for Quelimnane is the artificial Namite Lagoon closeto the Licuare River about 50 km northeast of town (Figure 4.6). The lagoon is fed bygroundwater and by pump and 950 m open canal from the river during dry periods whengroundwater flows decrease. The lagoon is severely overgrown by hyacinths andweeds. An intake tower with three pumps (one operational) in the lagoon feeds thetreatment plant on the shore. Another, bigger pump has been installed in a shed on theshore with an intake pipe into the lagoon and outlet pipe to the plant. The Germangovernment has funded the drilling of five boreholes near the treatment plant yielding150 to 220 m3 /h though the driller suspects that the long-term recharge will not allow allboreholes to be in operation simultaneously. One borehole has been completed, with asmaller pump than planned, and provides about 70 m3/h to the plant.

The conventional treatment plant is in a state of complete deterioration exceptfor one rapid sand filter. Due to lack of money, no chlorination is carried out and noequipment for this is present. Thus, water treatment for Quelimane is virtually non-existent.

From the treatment plant, water is pumped into an elevated reservoir, and furthergravity-fed by a 51 km main to ground level reservoirs in town. These systems are alsoin poor condition with pumps working intermittently or not at all, dangerouslydeteriorated support structures, and leaky tramsmission main. Direct pumping, omittingthe water tower, is considered impossible as several pipe-bursts occur every month withjust gravity, leaving the town without piped water supply.


Figure 4.6: The Quelimane Water System

Proposed LegendK dam site G Intake/Pumping statonW Well

\ Treatment workso Reservoir

D* am site

(l 9 RailwayN /\/ Main road

TRr.aenmis3ion main

uareic oaala

0 Ucar

j \~Naact

N < 5~~~~~~~~~~Aipr

.~~~ioCu


The pipeline supplies a few standposts and some private connections on its way to town.The distribution centre at AdQ headquarters comprises two ground tanks, a pumpingstation and a water tower from which water is supplied to the distribution system a fewhours per day. No bulk water meters are functioning anywhere in the production ortransmission system.

There are only 2,100 private connections (house/yard) in the city which serve 7% of the population (DHV 1994). About 1/3 of the population depend primarily onstandposts for their water (DNE 1994). However, only 12 of the 27 standposts installedare functioning. The rest of the population, approximately 60% depend on wells as theirmain source of water. The wells are apparently more reliable than piped water fromAdQ. Water use is not metered but average total use is estimated to be about 1,800 m'/d(DHV 1994).

The Water MaketIn Quelimane, standpost caretakers are apparently free to set their own prices for water.In response to the general raise in tariffs from February 1996, the EA team observed thatat one particular standpost the price was 50,000 Mt/n'. This is more that 70 times theofficial tariff at standposts set by the Government. The caretaker is allegedly charged319,000 Mt/month by AdQ for the operation of the standpost but there appears to be nocontrol from the enterprise on his financial operations. The price on the secondarymarket is also around 50,000 Mt/mr.

Sewege SystemsIn the city centre, a rudimentary drainage system is also functioning as seweragesystem, with several septic tanks connected. Apart from the septic tanks, which arenever emptied, no wastewater treatnent exists, and the combined drainage and sewageis discharged directly into the Cuacua River. Flooding septic tanks are common duringrains and blocked drainage canals and pipelines are causing health risks. Operation andmaintenance of the sanitation and sewerage systems are the responsibility of the CityCouncil, but no charges are being claimed or paid, and there is no formal cooperationbetween AdQ and the Council on the issue. Outside the town centre, sanitation facilitiescomprise pit latrines and a few septic tanks with soakaways.


Water Source. Treatment. Transmision and DistributionThe Namnite Lagoon is subject to siltation due to sedimnentation of turbid river water athigh flow, and to overgrowing due to stagnant water. Nonetheless, the lagoon isimproving raw water quality by filtration in the ground at high flows and functions as asettling basin for turbid water when this is pumped from the river. The plant operator ispleased with the intake arrangement as a whole and wants no changes. The ongoingground water development is important as it is believed to achieve a yield sufficient toclose down the treatnent plant for desperately needed refurbishment. The treatmentplant is virtually non-functioning and the population of Quelimane is consuminguntreated river water, except from the processes in the lagoon, mixed with ground waterreportedly of good quality. The situation undoubtedly has the potential for adverseimpacts on health.


Water Qnality, Consumers and HealthWater supplied to the public of Quelimane is of bad quality (e.g. washing machinescannot be used due to high contents of sand and silt), and house connections createwaste water. With the prevailing sanitary situation in Quelimane, with septic tanksflooding and never emptied and drained, or connected to a poor sewerage system, thehouse connections constitute a health hazard to the public, particularly during rains.Also, since water is provided only for a few hours a day, the distribution system isempty and non-pressurised most of the time. These conditions represent a high risk ofleakage of contaminants through cracks and open joints into the water-pipes.

Water supplied by AdQ is tested once a month by the Quelimane Hospitallaboratory. The water is normally regarded as unsuitable for human consumption.Diseases such as diarrhoea, cholera, hepatitis and typhoid fever occur in the city on aregular basis. Other water-related diseases such as malaria and filaria occur as well asproblems caused by improper hygiene practices (scabies and trachoma). Statistics couldhowever, not be obtained.

Although some health workers qualified the population's knowledge of hygieneand waterbome diseases as sufficient, it was admitted that there are many problems.

J Extension workers recommend that people boil drinking water before consumption, butmost people fail to do so. The reason is probably a complex of poverty, lack ofsufficient firewood and ignorance as to the health dangers of impure water.

The sanitation situation of public areas, such as markets is very poor. Only theCentral Market has a water connection. The markets in the peri-urban areas are notserved by AdQ.

Recevin& WatersWaste and storm water, carrying human and solid wastes, eventually discharges into theharbour and estuary of the Cuacua river totally uncontrolled and without treatment. Thepollution constitutes a health risk to fishermen, washing and other activities in andaround the harbour and shores bordering the seaward side of town, and has potentialnegative effects on the ecological systems of the estuary.


Supply and Demand ProjectionsDHV (1994) projected the population in the supply area to increase to about 149,000 in1997 and to 326,000 at the end of the planning period, year 2017. Approximately 40%of the population in 1994 were refugees, and it has been assumed that some 60% ofthese will return to their home villages. Only the urban and peri-urban population willbe covered by the supply system, and this part of the population is estimated to increasefiom today's 48% to 58% in 2017. Unaccounted-for water (UfW) is taken to be reducedfrom today's 50 to 60% of production to a modest 20% early in the planning period.The present level of service, with 52% not covered, with 22% of those covered havinghouse or yard connections, is expected to improve until full coverage of the urban andperi-urban population is reached in 2017 with 75% covered by house/yard connections.


Based on the above assumptions, DHV (1994) projected an average daily waterdemand increase to about 3,600 m3/d in 1997 and 26,000 m3/d in 2017, all to besupplied by AdQ.

NWDP InvestmentsProject investments by the NMDP for the Quelimane system are shown in Figure 4.7.They include hydrological and hydrogeological studies in the Licauri basin to improvewater supply data and examine the feasibility of a dam. New intake works at the riverand water main to the treatment plant (bypassing Namite Lagoon), refurbishment of thetreatment plant, a new transmission main, and new ground level storage in the town areplanned. Metering, leak detection and repair, and expansion/improvement of thedistribution system, including connection of settlements along the transmission main,are also part of the program.


Significant environmental effects:. increased surface water abstractions from Licuare River3 new transmission main from treatment plant to town (mainly due to the

expansion and upgrading of the road)

Minor environmental effects:* small weir and new intake on the Licaure River* transmission main from river to treatment plant* new ground level storage reservoir in town* extension of distribution system

4.5A Environmental Assessment of the NWDP

Location. Planning and DesignThe DHV (1994) report on Quelimane offered an analysis of the discharge pattern of theLicuare River based on data from a total of 14 years during the period 1967-84. Thedischarge has very irregular intra-annual distribution (only 6% from June to Novemberon average). The analysis also revealed that there is an important variability on an inter-annual basis. The mean flows in the river, in particular during October, will thereforenot be sufficient for the future demand from AdQ. Increased water abstraction from theriver, without a regulating reservoir, will further reduce the flow with the risk of theriver bed downstream remaining dry or with a very low flow over prolonged periodsduring the dry season. This may cause adverse ecological impacts downstream to wherethe river discharges into a marshy flatland and a network of historical riverbeds of theCuacua river. The time allocated did not permit the EA team to conduct firtherinvestigations. No settlements were, however, observed along the stretch of the riverwhich may be affected.


Figure 4.7:Project Investments in Quelimane

Hydrological Licuare alluvial aquifer XXXinvestigations (1.01) hydrogeological study. Start

hydro and meteorologicalprogram in Licuare basinand detailed investigationsof dam site on the LicuareRiver.

Leakage reduction Prepare reliable maps of I'm XXX XXX XXX(1.06) distribution system.

Install/repair bulk andconnection water meters.Leak detection and repair.

Service connections Install 1,500 HC, 1,500 YC XXX XXX XXX XXX(1.08) and 30 PT.

New intake (2.02) Build small weir in Licuari XXX XXXRiver. Construct new intaketower. Install 2 pumps 375rn3/h each.

Increase transmission Lay 51 km of 500 mm main. XXX XXX XXXcapacity (1.07) Install 2 pumnps 450 m3/h

each. Install water hammerfacilities.

Increase storage Construct 3,000 rn3 ground XXXcapacity (2.03) level reservoir in town.

Upgrade/expand Expand/improve distribution XXX Xdistribution system systemL Increase capacity of(2.04) prumary distribution system.

Service connections Install HCs, YCs and PTs. XXX XXX(2.05)

Bypass Namite Lagoon Lay I km of 400 mm main XXX(1.03) from river to treatment plant

Treatment (1.04) Rehabilitate treatment plant. XX =

Plans to construct a new intake at the river, and to bypass Namite Lagoon willomit use of the lagoon as pre-treatment of the river water, which must be considerednegative. On the other hand, waste of water and energy by seepage from the canal andlagoon will be avoided and, with a fully operational treatment plant, the solution willhave a net positive effect on the quality of water supplied.

The construction of a weir in the river, believed to be necessary to acquiresufficient intake depth, could have negative environumental effects as it will hinder thepassing of boats and possible fish migration during the dry season. Apparently, this is


not considered a problem locally, and no professional opinions were acquired during theteam's visit. The weir should be omitted if possible.

Both with regard to securing the water supply for Quelimane over the year andfor mitigating any negative environmental impacts from reduced flows during the dryseason resulting from increased water extraction, the DHV proposal of constructing astorage reservoir upstream is supported. It is recommended that estimation of thestorage volume of the new reservoir should include the eventual requirement of aminimum ecologicalflow downstream of the water intake. Although a new reservoir isnot included in the NWDP, this should be assessed during the proposed hydrologicalinvestigations.

The planning of increased treatment capacity at the present site must includeprovisions for the safe disposal/discharge of sludge and backwash water, possibly to thelagoon which will be abandoned as water source, or to the river downstream of the newintake if considered safe. Care should be taken in the design of the refurbishedfacilitiesto choose processes and equipment the same as or similar to the existing ones as far aspossible (see Section 7.2.1 for more details).

The NWDP includes the construction of a new, separate pumping station at thetreatment site pumping directly to town through a new transmission main with noconnections on the way. The old pumping station, water tower and AC transmissionline is supposed to be kept for supply of the villages along the route after repairs to thepipeline and valves. However, there is good reason to believe that the old pipeline isapproaching the end of its lifespan. It is recommended that the old pipe be abandonedand the new pipeline be equipped with branches along the route, including pressurereduction valves or local elevated reservoirs as required, to supply adjacent settlements.

The main road next to the pipeline is partly non-existent and a World Bankproject is upcoming for its rehabilitation and widening. With shoulders and ditches, thenew road will require a width of 30 m. It is expected that the road works will affectagricultural areas (rice fields) and require the resettlement of an as yet undeterminednumber of families. The new transmission main, parallel to and replacing the presentone, would probably also require the resettlement of some families along the route.

Planning and construction of the new transmission main should be closely co-ordinated with these road plans to minimize construction disturbance to local peopleand, where possible, make use ofjoint rights-of-way to minimize any requiredresettlements. In any case, detailed study is required to set thefinal transmission mainalignment and identify resettlement requirements.

CoQnstrumionNo construction impacts were identified which cannot be satisfactorily managed throughmeasures incorporated in the environmental management plan (Section 7.3).

Statistics indicate an unemployment rate of 45 % of the population in age groupsbetween 15 and 59 (DNE 1994). Construction works from project investments willcreate at least temporary employment opportunities for local skilled and unskilled


workers, provided that local companies are considered for engagement on the variouscomponents of the project. It is likely that qualified companies exist in Quelimane andshould be investigated further during project preparation.

QperationApart from the potential for increased sewage treatment and sanitary problemsaddressed in Section 4.2.1, no operation impacts were identified which cannot besatisfactorily managed through measures incorporated in the environmentalmanagement plan (Section 7.4).

Receiving WatersThe increased water supply and number of connections will cause increased sewage andwaste water production, especially if recommendations in Section 4.2.1 are notfollowed. Unless extension and improvement of the water supply is accompanied byparallel development of adequate sanitary solutions, the present untreated discharge ofsolids and human wastes will increase, polluting the harbour, the river estuary andnearby ocean and beaches, and creating the potential for impacts to both the aquaticenvironment and human health.

Recommendations for the planning of sewage and waste water treatmentfacilities were discussed in Section 4.2.5.

The Water MarketQualitative, quantitative and regularity improvement of the AdQ water supply will mostlikely contribute to a significant reduction in the cost of water for the poorer groups ofthe population in Quelimane. However, the impact of the improved water supply on thelocal economy will be contingent on the competitiveness of the AdQ water with waterfrom wells where these represent real alternative sources for people. Water from thewells is by its nature free, and well owners will only be interested in piped water if it isof sufficiently high quality and if supply is sufficiently reliable. The BeneficiaryAssessment study should take this issue into account.

The city of Quelimane hosts a number of industries that depend on regular watersupplies. These include a soap plant, a textile industry, fisheries, the railways and theshipping activities. Quelimane is a renown export port for, among other things, copraand tea (Grupo Madal) on the Mozambican coast. A producer of soft drinks had toclose down, probably from the lack of a reliable water supply. Continuing failure tosupply water on a sustainable basis may led to further closures of industrial plants, thusfurther endangering the city's economy. The NWDP will thus have substantialeconomic benefits for the town.


A future dam site, required for flow regulation in the Licuare River when water demandincreases, has been preliminary located by DHV (1994) to about 30 km upstream of thepresent intake. Although the NWDP does not include this new reservoir, the possibledevelopment of a reservoir in this area is commented upon in general terms in thisreport regarding environmental impacts. The reservoir area was overflown by the Team


and scattered farms were noted on shallow soils penetrated by rock within rather sparseprimary and secondary forest. The development of a reservoir will apparently notrequire major resettlement. The area to beflooded should be investigatedforenvironmental resources, e.g. minerals, before afinal decision about location of thedam and reservoir is made. Possible conflicts with historical or cultural areas areunlikely in the area in question, but this should always be investigated early in theplanning stage for reservoir developments.

The raw water quality from the new reservoir can be expected to be much thesame as from the present lagoon, providing the area to be flooded has no particularadverse characteristics and that activities in the area have not created pollution orcontamination. The reliability of water supply created by a reservoir may rapidlydecrease due to heavy siltation from the upstream river catchment area or fromadjoining terrain. The state of the catchment area should be investigated, the potentialfor water quality and erosion problems assessed, and their effects mitigated asnecessary by, for example, regulating land use, road construction and deforestation.

Clearing of the reservoir area should be planned to avoid impacts fromdecaying vegetation and to create the impression of a natural lake without the adverse

4 impression of a dead, flooded landscape.

Notwithstanding the above comments, an environmental assessment should becarried out ifplanningfor a dam proceeds into pre-feasibility studies.

The DHV report on Quelimane (1994) assessed the ground water potential in thealluvial valley of Licuare for water supply to Quelimane. DHV considered thedischarges from a well opened by Geomoc in 1981 to be in the high range when pumpedfor 6 months in 1985-6 (the well stopped operating probably due to inadequateconstruction and/or filters). A well field would probably provide additional water andbe less sensitive to dry years than the present Namite Lagoon. As mentioned in Section4.5.1, five boreholes have been drilled recently with German support near thetreatmentplant. More tests and hydrogeological studies (included in the NWDP) will, however,be needed to determine how the well field might be contributing to the future watersupply for Quelimane. It is recommended that the hydrogeological study should includean environmental assessment, in particular with regard to effects from drawdowns ofthe ground water table.


1. Estimation of the storage volume of the proposed new reservoir on the LicuareRiver should include the eventual requirement of a minimum ecologicalfiowdownstream of the intake. This should be assessed during the proposedhydrological investigations, although the reservoir is not part of the NWDP.

2. The proposed weir across the Licuare River should be omitted ifpossible.

3. The planning of increased treatment capacity at the present site must includeprovisions for the safe disposal/discharge of sludge and backwash water,


possibly to the lagoon which will be abandoned as water source, or to the riverdownstream of the new intake if considered safe. Care should be taken in thedesign of the refurbishedfacilities to choose processes and equipment the sameas or similar to the existing ones asfar as possible (see Section 7.2.1 for moredetails).

4. It is recommended that the old transmission main be abandoned and the newpipeline be equipped with branches along the route, including pressurereduction valves or local elevated reservoirs as required, to supply adjacentsettlements.

5. Planning and construction of the new transmission main should be closely co-ordinated with plans for rebuilding the roadfrom Quelimane via Nicadala, andpassed Licuare to minimize construction disturbance to local people and, wherepossible, make use ofjoint rights-of-way to minimize any required resettlements.In any case, detailed study is required to set thefinal transmission mainalignment and identify resettlement requirements.

6. Recommendations for the planning of sewage and waste water tr.eatmentfacilities were discussed in Section 4.2.5 above.

7. The Benefi ciary Assessment study should take into account the relativecompetitiveness ofAdQ and well water.

8. Concerning the proposed dam on the Licaure River (if being considered):

- The state of the catchment area should be investigated, the potentialforwater quality and erosion problems assessed, and their effects mitigated asnecessary by, for example, regulating land use, road construction anddeforestation.

* The area to beflooded should be investigatedfor environmental resources,e.g. minerals, before a final decision about location of the dam and reservoiris made. Possible conflicts with historical or cultural areas are unlikely inthe area in question, but this should always be investigated early in theplanning stage for reservoir developments.

* Clearing of the reservoir area should be planned to avoid impacts fromdecaying vegetation and to create the impression of a natural lake withoutthe adverse impression of a dead, flooded landscape.

* Notwithstanding the above comments, an environmental assessment shouldbe carried out ifplanningfor a dam proceeds into pre-feasibility studies.


4.6 NAMPULA


Institutional Eramework and Other ProjectsThe town of Nampula is the capital of the Province of Nampula, situated on the mainsouth-north and east west roads and the railway line, about 130 km from the coast(Figure 4.8). The water system supplies mainly the central parts of town. TheTexmoque textile factory, with 3,000 workers, used to be supplied from an intermediatereservoir along the transmission line but has been closed down. Nampula town andperi-urban areas is supplied by Companhia de Agua de Nampula E.E. (AdN). AdN isnot yet a registered state company and is supervised by the DNA through the NampulaProvincial MOPH office.

The financial situation of AdN is particularly bad. Water fee arrears amount atpresent to 2.3 million Mt or 11 months billed fees. Less than 1/4 of the billed fees arecollected each month, and the main defaulters are Government institutions. The rapiddepreciation of the Metical makes the financial situation for the company even worsethan the figures indicate. A fine system was introduced.in 1994 in which 50 % of the

4 outstanding amount is added to the bill for each month of non-payment. The fine-system is not applied at the standposts and there were no reports as to the success of thesystem. AdN has made arrangements with EDM with regard to payment for electricityand this may help the company stay afloat for some time. However, the situation is veryserious.

AdN and the City Council are on talking terms, but relations are somewhatstrained. As well, there appear to be co-operation problems within the Council itselfand among its various departments. This situation will diminish the Council's ability tocope with acute environmental problems in the town area.

Other projects in the area include EU-financed improvements to distributionsystems and new taps, but detailed information was not obtained. As well, Dutch-supported projects are laying new transmission mains and rehabilitating the pumpingstation (commenced June 1995, not yet complete) and working on erosion controleducation in peri-urban areas. A World Bank-supported Local Govermnent Reformand Engineering project (PROL) is planned to commence in Nampula. Anenvirornmental study has been carried out and the project will do an ecological analysisas an input to a structural plan (Kim HeInind, pers. comm.). Nampula will become atesting ground for urban environmental management practices in Mozambique.

Water Source. Treatment. Transmission and DistributionNampula pumps its raw water from a dam on the Monapo River about 10 km north oftown to a nearby treatment plant commissioned in 1976. No meteorological orhydrological data has been collected for some years. Of the approximate 4 Mm3 behindthe concrete dam, AdN estimates that 1/3 is silted up. Drains to reduce siltation areinstalled but have not been operated for many years due to fears among the staff of notbeing able to close the valve after flushing. Generally, the dam gives a good impressionand no serious faults, except minor leaks were reported. The intake tower has had four

00

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ProposedDam site

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\ ~~~~~~~~~Airport LegendN ~ ~ ~ ~ ~~~~~~~~~~~~~~~~~~~L In A. takle/Pumping station

k _:b L _ U~~~~~~~~~~~~~~~~~C Treawtment works\ == ~~~~~~~~~~~~~~~~~~~~~o Reservoir111 J * ~~~~~~~~~~~~~~~~~~Dam site

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vertical pumps installed, of which three are in working condition and deliver raw waterto the treatment plant.

The treatment plant capacity is rated at 800 m3 /h but requires major repairs andis operating at half that figure. The flocculation and filtration components are inparticular disrepair. No chlorination takes place at the plant due to forner requirementsof the Texmoque textile factory which could not use chlorinated water. Sludge from thefloccu-clarifier and backwash water from the filters are discharged back to the reservoirclose to the intake tower. Another group of filters were never completed beyond theconcrete structure, and have never been used. An old treatment plant, adjacent to theone in operation, is severely deteriorated but not beyond repair.

Clear water is pumped through parallel mains for 6.7 km to ground levelreservoirs at an intermediate booster station, then 2.5 km to AdN's distribution centrewhere it is pumped into a tower for gravity distribution. With Dutch funding, the high-lift pump station at the treatment plant is being completely rehabilitated and one of thetwo AC transmission mains is being replaced with larger PVC pipes.

At the intermediate station, chlorine is being supplied into one of the tanks afterthe former branch-off to Texmoque but the efficiency is doubtful since the gas issupplied from pressure containers at steady rate with no installation to inform when thecontainer is empty. The pumps are being replaced by new ones with Dutch funding.

The last station and distribution centre was originally a separate waterworks forthe railways, drawing water from a nearby stream. The treatment plant is locked andabandoned, whereas the ground reservoir, pumping station and the tower have beenincluded in the town supply. Apparently, the pipeline from AdN headquarters hascollapsed, and the distribution centre is not in use. The pumping station was fitted withnew pumps by the Dutch last year, and the Dutch govenmment will apparently befunding a new pipeline from the intermediate station to the reservoir.

The peri-urban areas of Nampula are served by 59 standposts of which 52 areactually functioning, according to AdN information. Each standpost serves 900 to 1000people on average. It is estimated that more than half of the city and peri-urbanpopulation draw their water from wells.

Nowhere in the system is water metered but production at the treatment plant isestimated at 9,000 m3/d.

The Waer MarketIn the Nampula peri-urban areas, each standpost is operated by two caretakers whocollect water fees and keep the standpost area clean. The caretakers sell water tickets of5,000 Mt each which entitle the holder to collect water for one month withoutrestrictions on quantity. The main problem is the unreliable water supply; tapping isrestricted to working hours, i.e. 5:30 to 12:00 and 14:00 to 17:00. The EA team wasunable to obtain any information regarding the secondary water market.


AdN is trying to address certain problems of the 'existing system. There is noconnection between the monthly fee and the quantity of water supplied, and in somecases the receipts from the sale of tickets do not cover the costs for water supply to thestandposts. Large quantities of water are used by people producing cement blocks, andseveral households may collect water by using the same ticket.

Sewerage SystemsThere is no sewerage system in Nampula. Most of the houses in the city centre haveseptic tanks followed by soakaways or connected to the drainage system. No propervehicles or system for emptying the tanks exist, thus blockages and overflows arecommon. The drainage system, virtually a combined sewer, is being discharged onslopes outside the city centre. As Nampula is located on top of the hill, with bairrossurrounding it, the situation is particularly bad since waste and drainage water, as wellas dirt and garbage from streets, find their way to the bairros during rains, causinghealth hazards. According to the City Council, rats are causing problems in the city andneighbouring bairros. Outside the town centre, pit latrines are the common sanitationfacility, some also having septic tanks and soakaways. It was reported that theprovincial administration has helped to improve sanitation in some schools, a largenumber of which have no sanitation facilities at all. Operation and maintenance ofsanitation and sewerage systems is the responsibility of the Council but no fees arebeing charged or paid and there is no formal co-operation between AdN and the Councilon the issue.


'Water Source. Treatment. Trasmission and DistribtoEnvirommental impacts of the present scheme could be seen in and around the dam andreservoir, along the transmission main, in the supply areas and in connection withwastewater discharge.

Two issues concerning impacts to the water source were noted: (1) the locationof the water intake inside a frequently visited leisure spot, next to a restaurant andswimming pool, and (2) the discharge of sludge and backwash water into the reservoirclose to the intake.

The location of the intake inside and the treatment plant immediately outside thegates of a leisure area is peculiar. The dam and reservoir have initiated theestablishment of the enterprise on the shore of a beautiful lake, and people are bathingnext to the intake. The swimming pool, on shore a few metres from the intake, isemptied into the reservoir when water is changed or overflowing due to rain. The samegoes for wastewater from the restaurant, whereas the toilets reportedly discharge totanks which are collected by trucks and emptied elsewhere. The mutual benefits for theestablishment owner and the water company seem to please both parties (the owner ofthe establishment is maintaining the road in good condition). However, the activitiesnext to the water intake are no doubt causing pollution problems and the arrangement istotally unacceptable by any standards.


The discharge of sludge and backwash water close to the intake is obviouslysilting up the inmmediate surroundings and causing inferior raw water quality. Thepositive element of not loosing the 5 to 10% of treated water used for backwashing doesnot make up for this, and another solution should be sought, e.g. dewatering anddepositing of the sludge and backwash water downstream of the dam. The latter wouldrequire a pumping station and a pipeline, preferably along the mountainside trackbetween the treatment plant and the dam.

No adverse environmental impacts of the original transmission main werereported, except for local erosion and flooding which used to be caused by frequentbursts on the old pipeline; This line is presently being replaced, and old and new pipeswere scattered all along the route from the treatment plant to town. Partly backfilledtrenches are causing erosion and silt run-off. It is to be expected that these adverseeffects will be dealt with soon as part of the contract as the project is close tocompletion.

In the distribution system, with the prevailing sanitary situation and septic tanksthat are never emptied and soakaways, house connections generating much waste waterconstitute a health hazard to the public,.particularly during rains. AdN provides water inthe distribution system only a few hours a day, meaning that the reticulation is emptyand without pressure most of the time. The described sanitary situation in town, as wellas pit latrines and open defecation in the villages, creates a high risk of seepage into thepipelines. The high degree of leakage and lost water suggests that the occurrence ofpollution of the drinking water in this way is very high.

Water Qualitv. Consumers and HealthThe present water treatment plant is in bad condition, the quality of the water producedis far from satisfactory, rendering chlorination ineffective, and is not fit for humanconsumption. Chlorination of the water is not taking place at the treatment plant but atthe intermediate reservoir and 2.5 km from town, a situation which is totallyunsatisfactory and provides no security for proper disinfection. This means that therestaurant at the intake and villages supplied between the treatmnent plant and theintermediate reservoir are getting non-disinfected water, creating a clear health hazard.

The Central Hospital laboratory in Nampula regularly analyzes the quality of thewater supplied by AdN. In most cases the tests show that the water is unsuitable forhuman consumption. The Urban Health Service also provides preventive health trainingin 11 health centres in the city and treatment of drinking water is one of the issues dealtwith. However, people do not normally boil their drinking water. Despite the healthservice's claims that their staff pay regular visits to the bairros for preventive healtheducation, the locals contacted by the EA team maintained that they never have met anhealth extension worker in their area.

Although water quality is poor and the preventive health care system deficient,the health situation (according to the same health service's statistics) appears to be notparticularly bad. Cholera and dysentery have not been registered, but diarrhoea isrelatively widespread,-particularly during the rainy season. This points at theunsatisfactory waste water system in the city.


Receiving WatemThere appear to be no proper waters to receive wastewater in Nampula, the combinedsewerage and storm-water system simply discharging on slopes and mostly dry streamsoutside town. The present arrangement, with the city centre on the top of a hillsurrounded by peri-urban areas at lower levels, creates serious health hazards. Thesituation has been worsened by the water supply system, enabling house connectionsand sewage production which is not taken care of in any way.


Supply and Demand ProjectionsDHV (1994) projected the population of Nampula to increase to approximately 295,000in 1997 and 610,000 at the end of the planning period, year 2017. Only the urban andperi-urban population is expected to be supplied by the public water supply system, andthis part of the population is expected to increase from today's 53% to 73% in 2017.Unaccounted-for water (UfW) is taken to be reduced from today's 40 to 50% ofproduction to a modest 20% early in the planning period. Of the urban and peri-urbanpopulation, 43% is today covered by the water supply system, 24% having house or

4 ryard connections and the rest serviced by public taps. The aim is to reach full coveragein 2017, with 75% covered by house/yard connections.

Based on the above assumptions, the DHV (1994) projected an average dailywater demand increase to about 11,600 m`/d in 1997 and 64,000 m3/d in 2017, all to besupplied by AdN.

NWDPInv ntsProject investments proposed by the Bank for the Nampula system are shown in Figure4.9. With the exception of monitoring and assessment studies to confirm and extendsurface and ground water availabilities, all involve improvements and extensions toexisting infrastructure, and leakage reduction. The elements are:

* Hydro(geo)logical investigations to gather flow data and investigate dam andground water alternatives

* Detect and repair leaks in existing dam* Build new intake in the reservoir* Construct a new treatment plant* Increased storage at the railway reservoir* Service connections, including house/yard connections and public taps


Significant environmental effects* increased water abstraction from Monapo River

Minor environmental effectsv new intake at the reservoir


* new treatment plant* new railway premises ground level reservoir and pumnping station* extension of distribution network and service connections

Figure 4.9:Project Investments in Nampula

Hydro(geo)logical Survey Monapo Dam and XXXstudies (1.01) reservoir and prepare O&M

rules. Start flow monitoringprogram Study damalternatives. Assess groundwater potential.

Intake station (2.01) Construct new intake in XXX XXXMonapo reservoir. Install 2pumps at 850 rn3/h each.

Treatment plant (2,02) Construct new treatment XXX XXXplant (Phase 1), capacity of24,000 m3/d.

Increase capacity to/at Construct new 2,500 rn XXX Xxx XXX xxxrailway reservoir (1.09) ground level reservoir at

PS4. Construct districtpumping station.

Service connections Install 2,200 HC, 5,500 YC XXX Xxx XX XX xxx(1.10) and 160PT.

Existing dam (1.11) Detect and repair leaks in XXXdaum

Distribution system Upgrade/expand/improve XXX XXX XXX xxx(2.03) distribution systemn increase

capacity of primarydistribution system.


Location. Planning and Design

The discharge of the Monapo River measured at the dam shows a very irregular intra-annual distribution with only 6% of the average during the dry season from June toNovember with a possibility of the river drying up towards the end of the season (DHV1994: Nampula, Annex II). With the present storage capacity (reduction due to siltingprobably not considered) of the reservoir, it is, however, estimated that AdN will havesupplies with adequate reliability up to the year 2007. The estimated demand of 29,000m3/d represents less than 10% of the mean annual discharge at the dam. Only inextreme drought situations is there a possibility of water shortages.


The EA team did not obtain any information regarding the ecology and land usedownstream of the dam. Although data are not available (earlier recommendations tocollect hydrological and meteorological data had not been followed up), it is likely thatthe periods of dry riverbed are prolonged by the extraction of water from the reservoir(if the present leaks from the dam do not maintain a minimum flow). This may havenegative environmental impacts beyond the normal effects of the dry season, but to whatdegree is not possible to assess. There are no medium or large scale irrigation schemesin the area of influence and AdN has received no complaints about loss of water whichcould be attributed to the dam.

It is recommended that, in connection with the new 0 & M rules (regulationregime) to be prepared, the needfor maintaining a minimum flow from the dam forecological or other reasons, should be considered.

For a discussion of possible impacts from the proposed new dam upstream fromthe existing one, see Section 4.6.5.

Increasing treatment capacity by construction of a new plant should not causesignificant adverse environmental impacts if the existing plant were in satisfactorycondition and fumctioning well. However, for Nampula, the planning of increased watertreatment capacity at the present site must first of all include provisions for improvedaw water quality, in particular making proper arrangements for the discharge of sludgeand backwash water. Failing this, an increasing number of consumers will be subjectedto the hazards imposed by the present situation. ThIus, it is recommended that:

* the NWDP include in its investments a pipelinefrom the treatment plantsand along the mountain side track to carry sludge and backwash water tothe downstream side of the dam; and

*The new reservoir intake be located as close as possible to the dam, and asfar as possiblefrom the leisure area, to minimize the potentialfor water-borne wastes from the leisure facility from entering the intake.

Care should be taken in design of the new treatment facilities so as to chooseprocesses and equipment the same as or similar to the existing plant. Different designsand operational routines will increase the risk of faulty operation and the need for alarge number of different spare parts, thus adversely affecting the safety andpossibilities for proper maintenance and quick repair of breakdowns.

Furthermore, chlorination must be shiftedfrom the intermediate reservoirs tothe treatment plant. If Texmoque is reopened and still have the same requirementsregarding chlorine content, other disinfection methods should be evaluated, e.g. UV-transmission at the treatment plant followed by chlorination at the intermediate station.

Most of the sub-projects in the first development block of the DHV (1994)report are under way with funds from the Dutch government. However, it is unclear ifthey will also undertake the rehabilitation of the existing intake and treatment plant. If


this is not being done under Dutch aid, it should be included in the investment programas the plant presently is producing water far below acceptable standards.

No bulk water metering is taking place in Nampula, and few consumer metersare functioning. The amount of water lost through leakage is thus unknown, but of the40% unaccounted-for water, and based on the situation in other towns, it can beassumed that leakage is an important issue. If water metering and leakage detection,including construction of reticulation maps, are not part of the Dutch-fundedrehabilitation program, they are recommendedfor World Bankfunding. Excessive lossof clean water, produced and pumped at high cost, is not acceptable and causes adverseeffects due to unsatisfactory supply to customers.

ConstructionNo construction impacts were identified which cannot be satisfactorily managed throughmeasures incorporated in the environmental monitoring and management plan (Section7.3).

Due to time constraints it was not possible to contact the provincial employmentservices to obtain informnation on qualified construction companies and the labourmarket. However, the situation is probably not very different from the other cities.Compared to Beira and Quelimane, Nampula is a rural town. Many inhabitantsmaintain agricultural plots outside town which they attend to during the rainy season.About 46 % of the population (above 7 years of age) describe themselves aseconomically active (DNE 1994), and about 27 % qualify themselves as farmers. Theunemployment rate is high, about 54% claiming to be unemployed. Both skilled andunskilled workers would be available through local construction companies.

Ooeration

Apart from the potential for increased sewage treatment and sanitary problemsaddressed in Section 4.2.1, no operation impacts were identified which cannot besatisfactorily managed through measures incorporated in the environmental monitoringand management plan (Section 7.4).

However, with dams and reservoirs, there is always a risk of serious adverseimpacts from improper operation and maintenance, such as flooding of downstreamareas, erosion, loss of precious water, siltation, etc. This can only be avoided throughproper planming and provision of operation and maintenance manuals, and training ofstaff, which must be adhered to. Proper monitoring of dam, reservoir, adjoining areasand downstream effects are important factors.

iving WatersThe prevailing situation regarding treatment and discharge of sewage and waste water inNampula is particularly difficult since there appears to be no proper receiving watersclose to town and with a year-round flow adequate for sufficient dilution and naturalpurification of waste waters. While the general recommendations concerning sewageand waste water collection and treatment (Section 4.2.5) should be considered andprevail, alternative solutions must be evaluated. A separate system for transporting allsewage to treatment at all times may prove to be necessary, with increased costs. If a


combined system is found sufficient, this must be provided with overflow arrangementsdischarging to artificial or natural streams or ditches during heavy rains.

During the planning and design of a sewage and waste water collection andtreatment system for Nampula, we recommend that special attention be paid to thechoice of treatment method and especially to the method(s) for disposing of bothoverflow from the collection system during heavy rains and discharge from thetreatment plant.


DHV (1994) estimated that natural flows in the Monapo River and the capacity of theexisting dam permit abstraction of 30,000 m3/d (95% reliability). When needed, around2007, the only realistic alternative to maintain a reliable water supply would be toconstruct a second storage dam some 8.5 km further upstream. The report alsorecommends that ground water supply should be investigated for local supplies to peri-rural areas, but expects limited yields. The ground water option will thus not bediscussed further here.

Further investigations will be required to confirm currentflows in the MonapoRiver and to determine the feasibility of greater water abstractions, both with thecurrent supply arrangements and with a possible second dam in thefuture.

The site for the new dam has been preliminary located, based on topographicalmaps, and no further investigations have been carried out regarding population, geology,flora, fauna etc. The area was overflown by the Team during the visit. Although theproposed new dam is not included in the NWDP, the possible construction of a dam andreservoir is commented upon in general terms regarding environmental impacts.

The reliability of water supply created by a reservoir may rapidly decrease due toheavy siltation from the upstream river catchment area or from adjoining terrain. Rawwater quality can be expected to be much the same as from the present reservoir,providing the area to be flooded has no particular adverse characteristics and thatactivities in the area have not created pollution or contamination. The state of thecatchment area must be investigated, the potentialfor water quality and erosionproblems assessed, and their effects mitigated as necessary by, for example, regulatingland use, road construction and deforestation.

The establishment of a regulating reservoir may create social conflicts as it willintroduce a different flow pattern. Small water catchment dams on the slopes to theriver between the present and future reservoirs could be seen from the air at the time ofthe team's visit, indicating that irrigation is or has been in use. This suggests the needfor maintaining a regulated, minimum flow in the river, or the necessity of resettlementofpeople. Provision of new, acceptable land, and payment of reasonable compensationand resettlement .-osts must be expected.

The area to bL flooded is used for a large-scale afforestation project. Only 1,700ha of the planned 20,000 ha were actually planted. Farmers have moved into the area


during wetter years but moved on when the eucalyptus started to constrain the growth oftheir crops. The afforestation project originally included the borders of the existingreservoir. It was hoped that this would stop erosion and silting of the lake. However,most of the silt probably originates from the river it self. Design of the new dam shouldtherefore take the silt load into consideration.

Clearing of the reservoir area should be planned to avoid impacts from decayingvegetation and to create the impression of a natural lake without the adverse impressionof a dead, flooded landscape. The area should also be investigated with regard to otherenvironmental resources (e.g. minerals) before a final decision about location of the damand reservoir is made. Possible conflicts with historical or cultural areas are unlikely inthe area in question, but this should always be investigated early in the planning stagefor reservoir developments.

Notwithstanding the above comments, an environmental assessment should becarried out ifplanningfor a dam proceeds into pre-feasibility studies.


. In connection with the new 0 & M rules (regulation regime) to be prepared forthe Monapo dam and reservoir, the needfor maintaining a minimum flowfromthe dam for ecological or other reasons, should be considered.

2 Concerning the treatment plants and intakes at the Monapo reservoir, it isrecommended that:

- The NWDP include in its investments a pipeline from the treatment plantsand along the mountain side track to carry sludge and backwash water tothe downstream side of the dam; and

* The new reservoir intake be located as close as possible to the dam, and asfar as possible from the leisure area, to minimize the potentialfor water-borne wastesfrom the leisurefacilityfrom entering the intake.

3. Chlorination must be shiftedfrom the intermediate reservoirs to the treatmentplant.

4. If rehabilitation of the existing intake and treatment plant is not being doneunder Dutch aid, it should be included in the investment program as the plantpresently is producing water far below acceptable standards.

5. If water metering and leakage detection, including construction of reticulationmaps, are not part of the Dutch-funded rehabilitation program, they arerecommendedfor World Bankfunding.

6. During the planning and design of a sewage and waste water collection andtreatment system for Nampula, we recommend that special attention be paid to


the choice of treatment method and especially to the method(s) for disposing ofboth overflow from the collection system during heavy rains and discharge fromthe treatment plant.

7. Further investigations will be required to confirm currentflows in the MonapoRiver and to determine the feasibility of greater water abstractions, both withthe current supply arrangements and with a possible second dam in the future.

8. Concerning the possible second dam on the Monapo River (if being considered):

* The state of the catchment area must be investigated, the potentialfor waterquality and erosion problems assessed, and their effects mitigated asnecessary by, for example, regulating land use, road construction anddeforestation.

* Indications of small-scale irrigation above the existing Monapo reservoirsuggest the needfor maintaining a regulated, minimumflow in the river, orthe necessity of resettlement ofpeople. Provision of new, acceptable land,and payment of reasonable compensation and resettlement costs must beexpected.

* Design of the new dam should take the silt load into consideration.

* Notwithstanding the above comments, an environmental assessment shouldbe carried out ifplanningfor a dam proceeds into pre-feasibility studies.


4.7 PEMBA


Institutional Framework and Other ProjectsThe town of Pemba is the capital of the Province of Cabo Delgado, situated on thepeninsula between the Bay of Pemba and the Indian Ocean. Aguas de Pemba (AdP) isstill a state enterprise "in creation". It is currently reorganising its internal structure inan effort to make it more effective and efficient. There are no visible positive results ofthis reorganisation due to the supply problems of the well fields, which have reducedincome from water sales. As a reaction to the prolonged crises, about 100 of the 3,500clients have suspended their contracts with AdP. Among these were many of the largerconsumers. AdP management feels that the state enterprise status restrains itsdevelopment, and is dissatisfied with its present relations with the State. The State setstariffs that inhibit the company's profitability without providing subsidies for coverageof subsequent income shortages.

The population in the peri-urban areas is mainly served by wells, constructed byAgua Rural (EPAR) which is a section of the Provincial Directorate of Water (DPA)and part of the National Programme for Rural Water Supply (PRONAR). 25 of the1,600 wells maintained by EPAR are located within the city boundaries. EPAR isinvestigating methods to improve public participation in maintenance and cost recoverythrough a network of locally elected "caretakers". The caretakers also monitor thecondition of the wells and quality of the water. DPA maintain a database where theinformation is processed.

The Swiss Organisation for International Co-operation, Helvetas, is supportingthe wells program in Cabo Delgado, and the Dutch government will be financing aSupport Unit North (Niassa, Nampula and Cabo Delgado provinces) based in Nampulawhich will work on institutional development for (peri-) urban water supply systems.The Italian government will be financing new reticulation network and a public tapsystem.

Water Source. Treatment. Transmission and DistributionThe only water source at present for Pemba water supply is the Metuge ground waterwell field along the Muaguide River, commissioned in 1993 (Figure 4.10). It has adesign capacity of 9,600 m3/d but delivers only 2,900m3/d, mainly due to poor boreholeconstruction and corrosive water with high iron content. Water is discharged to acentral reservoir, chlorinated and pumped about 40 km via several intermediatereservoirs and booster pumping stations to the main storage capacity near the airportsome 4.5 km from the end reservoir/cistern in town. Along the transmission main, thevillages of Metuge, Mieze and Morrebue are also being supplied.

The former water source for Pemba, the Chiuba well field, located about 8 kmsoutheast of town has been abandoned due to salt water intrusion. Only the boreholesand the collecting reservoir are left; all headworks, buildings and equipment have beendemolished and/or removed by vandals. The pumping station has also been vandalised,only the walls remain.

Rio~~ ~ ~ ~ ~ 1 f a U id

Chiuba~~~~~~~~~~~~~~~~~~~~~

!i Intake/Pumping sti w o

| l 1 h | | |~~~~t IntkPmig sttc

* Wella] Treatment workso Reservoir

lAezl ~ ~ ~ ~ * Dam siteMain road

A! HfTransmission mainrS \ 3 o ~~~~~~~~~~~~~~~Rivervi


Only eight standposts are installed in the peri-urban areas, supposed to serve asmany as 54,000 inhabitants. Due to lack of piped water and the poor supply to theexisting standposts, most people of the bairros depend on wells. The 22 wellsconstructed by EPAR in the bairros (DHV 1994) are relatively shallow (4 to 7 m deep).Three boreholes were also drilled by EPAR. However, the water supply systems aredeficient, each standpost, borehole or well serving an average of 1600 persons, threetimes as many as desired.

The Water MarketAdP has tried several payment systems for public taps through a project of communitymanagement of standposts. Existing variants include the appointment of a caretaker bythe community of water users and the leasing of the standpost to private contractors. Ata standpost visited during this study, the previously elected community member hadbeen replaced by a private contractor. Consumers were charged the average of 5,000Mt/im3, while AdP billed the contractor 700 Mt/m3 for the metered consumption fromthe standpost. Water meters are, however, often not functioning or have beenmanipulated to measure less than the real consumption.

The secondary market in Pemba mainly consists of people with houseconnections and tanks. Prices vary from 10,000 to 50,000 Mt/m3. AdP suspects that 10to 20 individuals are selling water on a large scale.

Sewerage SystemsThere is no full sewerage system in Pemba. In the city centre, most buildings haveseptic tanks, whereas latrines and open defecation, also on the beach, are commonsolutions in other parts of the town and the neighbouring villages. Septic tanks are notemptied since the breakdown of the collecting truck several years ago.

Wastewater is collected partly in separate, partly in combined sewers. A ditchstarting in the high zone ends in a close conduit between the cinema and the port,carrying combined wastewater. Broken-down pipes and clogging cause overflow of thepipeline which discharges to the sea without treatment. A separate sewage line from thehospital is connected to the sewerage system along the main street and discharges to theocean without treatment. In the bairros the situation is very bad -- 80 % of the housesare without latrines. Unicef is currently assisting a project for construction of pitlatrines in the Pemba area.

There is no formal connection between AdP and the Municipality Council,which is responsible for sanitation, and no charges are billed or paid for sanitaryservices. However, the two institutions are discussing water supply and sanitationexpansion and problems, and are on good terms.


Water Source. Treatment. Transmission and DistributionAccording to the test-pumping protocols, the static ground water level throughout theMetuge well field was 3 to 5 m below ground level before pumping started. Draw-

72 Assessrnent of Urban and Peri-Urban Water Supply

downs at design yield for the respective boreholes varied between 10 m and 15 mleaving the water levels in the boreholes at 15 to 20 m below ground level. The currentvariations in the water levels are not known since the piezometer arrangements formonitoring ground water levels in the area have disappeared.

According to AdP, no vegetative variations have been detected in or around thewell field even during dry seasons. The EA team visited the well field at the end of avery wet rainy season and the area gave the impression of being very fertile, with tallgrass and maize. The present well yields are small and it must be concluded thatphysical environmental impacts due to abstraction of ground water at Metuge well fieldso far have been minor if any. The area around the well fields is inhabited by rain-fedslash and burn shifting farmers. Apparently they moved into the area after the road wasopened into the well field. The households use surface or shallow well water. Anysignificant impact on agriculture from lowering of the ground water levels and impactfrom agriculture on water quality is not very likely with the present farming practices.

Expansion of the well field in a westward direction may, however, have anindirect impact. There are indications that shallow well water in the area is influencedby salination (EPAR 1996). Contrary to AdP officials, EPAR indicated that minorchanges have taken place over the past years in the vegetation west of Metuge waterdivide and that this indicates salinity influence in the area. The information offered isunclear and more based on intuition than factual observations. Salt in the well watermay also indicate the existence of sediments of marine origin in the area.

In or close to the area proposed for new wells, several claims have been madefor land concessions for farming. One concession of 20 ha is -located within the area,and another 6 concessions of approx. 790 ha have been granted in its vicinity. Twoother requests are still being considered.

Water Quality. Consumers and HIealtWater quality from the piped system and wells is regularly monitored by the PembaHospital laboratory. However, recent test reports were not available. Since AdPprovides water in the distribution systems only a few hours a day, it will be empty andwithout pressure most of the time. The described sanitary situation in town, as well aspit latrines and open defecation in the villages, thus create a high risk of seepage into thepipelines. The high degree of leakage and lost water suggests that the occurrence ofpollution of the drinking water in this way is high.

According to the Health Department, the occurrence of water-related diseasesare relatively high in Pemba. The relatively densely populated bairros of Cariac6 andIngoname are the worst hit. However, dysentery occurs more frequently in the cementcity than in the bairros of Paquite and Cariac6. Waterbome diseases are most likely theresult of consumption of water from contaminated wells, tanks and local privatereservoirs where piped water has been contaminated from sewage through leakage. Thehigh figures of diseases in Pemba, as compared to country averages, may also be a resultof a better functioning registration system in this relatively small town.


The only market served by piped water is the Central Market in the cement city.Most commercial activities are concentrated in markets in the bairros, the mostimportant being located in Natite. These markets are not serviced with piped water anddo not have any sanitation systems.

Irregularity of water supply has made people use tanks and other reservoirs forstorage of water. The Health Department is preparing a program for the cleaning oftanks at the owners request and cost.

Receiving WatersWaste and storm water, carnying human and solid wastes, will eventually be dischargedto the sea, mostly into the Bay of Pemba, where it pollutes the beaches and shallowwaters and creates health hazards to possible swimmers, and to fish and fishermen as thecatch is being hauled onto the beaches. During the EA team's visit, the shores andwater on the ocean side of the peninsula appeared clean and fresh while the coastlinefacing the bay was obviously polluted, with floating garbage and oil spills drifting alongthe shores.


Supply and Demand ProjectionsDHV (1994) projected the population of Pemba to increase to approximately 80,000 in1997 and 135,000 at the end of the planning period, year 2017. Only the urban and peri-urban part of the population, in addition to villages along the transmission main, isexpected to be supplied by the water supply system, and this part of the population isexpected to increase slightly from today's 44% to 47% in 2017. Unaccounted-for water(UfW) is taken to be reduced from today's 40 - 50% of production to a modest 20%early in the planning period. Of the urban and peri-urban population, 54% was coveredby the water supply system in 1992, 48% having house or yard connections. The aim isto reach full coverage in 2017, with 75% covered by house/yard connections.

Based on these assumptions, average demand on the system is expected to grow toabout 4,300 m3/d in 1997 and 14,000 m3/d in 2017. DHV (1994) recommended that theChiuba field be refurbished to supply adjacent villages. As the safe yield of the Metugefield aquifer is thought to be only about 6,000 m3/d, eastward extension of the field toexploit another aquifer was recommended to provide an additional 6,500 m3/d.

NWDP InvestmentsProject investments proposed by the Bank for the Pemba system are shown in Figure4.11. With the exception of hydrogeological studies to determine safe yields fromaquifers at Metuge, all involve improvements and extensions to existing infrastructure.In particular, several villages/bairros will be connected and the distribution systemexpanded.

Project activities on which the EA focuses, with a distinction between those whichmay cause significant effects and those for which effects are likely to be minor, are:


Significant environmental effects* increase ground water abstractions from existing Metuge well field

Minor environmental effects* extension of distribution network

Figure 4.11:Project Investments in Pemba

je:L - ~~~~~~~ ~~YL5 -

Hydrogeological Study safe yields of Metuge XXXinvestigation (1.01) aquifers (east and west).

Water metering and leak Install/repair bulk water XXX XXX XXXreduction (1.0516) meters and connection water

meter. Prepare reliable mapsof distribution system. Leakdetection and repair.

Rehabilitation of Chiuba Repair existing facilities. XXXwellfield (1.07) Construct facilities for

Cluuba and adjacentvillages.

Rehabilitation of Reconstruct boreholes and XXX XXXMetuge wellfield (1.04) electrical lines. New pumps.

Construct flood protectionand pump housing. Providespare parts.

Phase 2 of ongoing Connect Alto Gingone- xxx XXXproject to connect Wimbe, Morrebue, Miezevillageslbairros (1.03) and Nangua sub-systems

Service connections Install 315 HC, 1,000 YC XXX XXX(1.08) and 50 PT.

Upgrade distribution Increase capacity of primary XXX XXXsystem (2.01) and secondary distribution

systems.

Expand distribution Expand distribution systems. XXX XXX(2.02)

Service connections Install 250 HC, 1,180 YC XX XX l

(2.03) and 45 PT


Location. Planning and DesignThe probable impacts of the extension of Metuge well field will relate to the groundwater table, possibilities of salination and effects on agriculture. The extension must becarefully designed, based on thorough hydrogeological investigations and extensivemonitoring of the water table and draw-downs during test-pumping. The area should


be declared a partially protected zone. New settlements in the area should beprohibited, and resettlement ofpeople presently living in the wellfield may benecessary. Impact on and from agricultural activities in the influence area must becarefully considered with regard to drought and pollution, and possible reducedflow inthe Muaguide river must be evaluated. Care must be taken when choosing equipmentand materials suitable for the prevailing water quality with corrosive properties andhigh iron content. The hydrological investigations should treat the issue of salinity withthe necessary concern.

Treatment of the water, probably restricted to aeration and iron removal, mustbe considered on the basis of laboratory testing of water samples from the test-pumping

The project includes a water metering program for bulk supply and individualconnections, and a leakage reduction program including the establishing of reticulationmaps. As discussed above, the safe well field yield at Metuge is suspected to be lowerthan the designed abstraction capacity, and reduction of the demand through leakagereduction is thus of extreme importance. The metering and leakage reduction programsshould be givenfirst priority in Pemba.

The investment program includes close to 3,000 new connections, of whichalmost 600 are house connections. The total number of connections in 1992 wasestimated at approximately. 2,400 of which 1,150 were house connections. The numberof new connections planned is considerable, and will cause serious adverse impacts ifthe increased sewage production is not taken care of in a safe way. As emphasized inSection 4.2.1, plans for new house connections should be reduced in the NWDP ifappropriate sanitary solutions are not introduced along with the water supplydevelopment.

ConstrucfionDevelopment, operation and maintenance of both well fields will require extensiveaccess road rehabilitation and construction work and areas for storage of constructionmaterials. Care must be taken to avoid conflicts with settlements and agricultural areasalong the roads. Storage areas for construction materials and equipment must beestablished on free land, fenced and guarded.

Although the working market situation is not as bad in Pemba as in most othercities, only 23 % of the potential labour force hold formal employment (DNE 1992).One third considers themselves as totally unemployed, the balance consisting of farmersand the informal sector. Rehabilitation and expansion of the water supply system mayoffer some new employment opportunities, at least during the construction phase. Thereare at least three companies in Pemba capable of exercising construction works: EMAC,Construc,co Civil e Infrastructuras and Empresa de Reparacao de Casas.

0peionLow yields may be caused by siltation of gravel-pack, corrosion of screens andexcessive draw-down, and will cause reduced water supply and may lead to breakdownof pumps. With the high degree of water lost in transmission and distribution, it can beforeseen that the total planned capacity to be installed will be used as from day one after


rehabilitation. As a result, excessive draw-downs and general lowering of the watertable may well cause impacts on vegetation, reduce crops and available fire-wood, andreduce flow in streams and rivers in the area. It may also cause land subsidence andharm to borehole headworks and structures. Shallow wells may dry out. Adverse waterquality may cause health problems, clogging and corrosion of pipes, and loss ofborehole installations. Long term ground water abstraction is different from test-pumping, and developments in the influence area must be closely monitored with regardto yields of each borehole, draw-downs and water table, water quality and impacts onvarious crops, trees and vegetation in general. As a consequence, hydrogeologicalinvestigations, planning and design are required prior to rehabilitation of the entirewellfield. As well, intensive monitoring, inspection and management of operations arenecessary to avoid adverse environmental impacts.

Water Market and Employrent SituationA number of industrial enterprises in mining (graphite), logging, plywood and fisheriesare or have been operating in Pemba. Major employers are Marmonite, ECMEP, EDM,TDN, Texmanta and the airport. It is known that at least two companies, Texmanta andMarmonite have had to reduce operations due to water supply problems. Securing watersupplies will improve operations of existing enterprises and create conditions forrehabilitation, expansion and establishment of new industries.


DHV (1994) concluded that the abandoned Chuiba well field should be rehabilitated toprovide a safe yield, avoiding salt intrusion, of 1,000 m3/d and that necessarytransmission facilities be installed for supply of Chuiba and other adjacent villages. Theredevelopment of Chuiba well field to a yield far below the former capacity will,according to DHV, cause no significant environmental impacts, and salt intrusion willprobably not occur at the suggested maximum yield.

Based on aquifer characteristics and numerical models, DHV (1994) concludedthat the safe yield of the present Metuge field is approximately 4,600 m3/d, far below theoriginally installed capacity of approximately 9,500 m3/d. However, it is assumed witha high degree of certainty that the well field can be extended eastwards and thus attain asafe yield of approximately 11,200 m3/d.

The future exploitation of the present well fields in Pemba, if achievable, willsecure the projected water supply until the end of the planning period, year 2017. TheDHV report makes it quite clear that thorough hydrogeological investigations and longterm test-pumping are needed. If the real safe yield of the extended Metuge well fieldshould prove to be less than the theoretical value, the supply will have to be augmentedby abstraction of water from the Mieze or the Muaguide Rivers. These solutions willalso have to be considered for supply beyond year 2017. Abstraction of water from bothrivers will require the construction of dams and reservoirs, and water treatment plantswill be required. The future abstraction of water from the rivers, including dams andreservoirs, is regarded only as a possible necessity in Pemba, and the environmentalimpacts are not considered here.


The water supply situation in Pemba is becoming critical. Due to breakdownsand low yields of the remaining boreholes at Metuge and the abandoning of Chuiba wellfield, combined with a high degree of leakage and unaccounted-for water, water issupplied to the customers a few hours a day only and new breakdowns and furtherreduction of yields are highly probable. The rehabilitation of Metuge well field, andlater redevelopment of Chuiba, are thus of great importance to prevent fuirtherdegradation of living and health standards in Pemba.


1. Concerning the extension of the Metuge wellfield:

* It must be carefully designed, based on hydrogeological investigations andextensive monitoring of the water table and draw-downs during test-pumping.

* The area should be declared a partially protected zone.* New settlements in the area should be prohibited, and resettlement ofpeople

presently living in the wellfield may be necessary.* Impact on andfrom agricultural activities in the influence area must be

carefully considered with regard to drought and pollution, and possiblereducedflow in the Muaguide river must be evaluated.

* Care must be taken when choosing equipment and materials suitable for theprevailing water quality with corrosive properties and high iron content.T The hydrological investigations should treat the issue of salinity with thenecessary concern.

- Treatment of the water, probably restricted to aeration and iron removal,must be considered on the basis of laboratory testing of water samples fromthe test-pumping.

2. Because the safe wellfield yield at Metuge is suspected to be lower than thedesigned abstraction capacity, reduction of the demand through leakagereduction is of extreme importance and the metering and leakage reductionprograms should be given first priority.

3. During construction, care must be taken to avoid conflicts with settlements andagricultural areas along the roads. Storage areas for construction materialsand equipment must be established on free land, fenced and guarded.

4. During wellfield operations, thorough hydrogeological investigations, planningand design are required prior to rehabilitation of the entire wellfield. As well,intensive monitoring, inspection and management of operations are necessary toavoid adverse environmental impacts.


. . .~~~~~~~~~~~~~~~~~~~~~

Assessment of Rural Water and Sanitation 79

5. ASSESSMENT OF RURAL WATER AND SANITATION

5.1 Current Condition of Rural Water and Sanitation

According to the National Water Policy (NWP) document (1995), sufficient waterresources had been developed to increase the supply to rural communities to cover 6%of the population in 1980 and 30% in 1993. The present level of use and the quality ofthe services is not known. It is likely that a significant number of small piped systems(SPS) have been abandoned due to destruction, lack of maintenance and migrationduring the war.

The EA team did not come across any reliable information with regard to thepresent sanitation situation in rural towns. It would, however, not be too far fetched toassume that sanitation is provided by septic tanks and latrines in the centres of ruraltowns and by latrines and open defeacation in the surrounding areas.

5.2 Project Descrption

This component of the project is still being developed but is expected to include thedevelopment/strengthening of community-based water users' associations in rural townsand peri-urban districts; community-led design of SPS, and complementary sanitationsuch as simplified sewerage, septic tanks, pit latrines, drainage and solid wastemanagement; and subsequent project investments in these systems/works. Only anoutline design document was prepared at the time of the EA study (21 March 1996), andthe EA will therefore simply provide recommendations/guidelines on how thesesystems/works may best be implemented to be environmentally and socially sustainable.

A lump sum of USD 5 million is allocated for this component in the NWDPinvestment program (WB 1996b). Specific villages/towns or provinces have not yetbeen identified for the project.

The total estimated costs have not been broken down, but the followingcategories are indicated:

i) SPS component management;ii) Studies on optimal arrangements for public participation and sustainable

management and operation of SPS;iii) Beneficiary assessments for identification of eligible towns;iv) Capital investments in SPS and complementary urban environmental

management initiatives (sanitation, drainage, solid waste management anderosion control);

v) Support to a district/provincial fund management unit; andvi) Workshops and information dissemination.

The NWP document (1995) indicates that up to 200 SPS shall be rehabilitatedand that the number of improved family latrines should be doubled to 200,000 by the

80 Assessment of Rural Water and Sanitation

year 2000. The SPS component is proposed as a pilot project, and the number ofprovinces benefiting and the number of SPS to be targeted will be limited, probably farbelow the target of NWP. A Low Cost Sanitation Programme is presently beingimplemented with UNICEF support. The outline design document indicate futurecoordination between the two programs.

The document fiurther discusses and indicates possible institutional frameworks,development of public participation mechanisms, project management, technicalevaluation and monitoring arrangements. Issues in the fields of hydrology, environmentand technology are mentioned, but not discussed in the document.

5.3 Recommendations on Environmental Issues

It is expected that none of the SPS will be of a size and magnitude which would requirefull EA (WB Category A) but some, depending on size, may require environmentalanalysis (WB Category B). The feasibility studies of individual SPS projects should,however, be prepared in a way to facilitate proper environmental screening inaccordance with the Bank's OD 4.01. The scope of the TORsforfeasibility studies ofindividual projects should therefore include relevant environmental issues for furtherinvestigation and assessment if required.

Issues of physical, biological and social environmental concerns with regard toSPS would normally, among more site specific issues, include the following moregeneral issues:

- Impacts of water extraction from source - lowering of water table (groundwater),reduction of downstream flows (river) with possible conflicts with other users and/orbiological impacts.

* Flooding and hydrological changes in case of dam construction* Pollution of water source* Impacts from increase in waste water production - consequences for sanitation

system choices* Health -- possible change in incidences of water-bome diseases and malaria

Design criteria for the SPS should be developed during the feasibility phase. Astarting point is to define the minimum criteria for people's access to water. A basicprinciple would be that the criteria should be based on what people can afford.

People's real conception around the issue of water therefor needs to be clarified.The document stresses public participation at all stages of the project cycle. This isimportant, but is not easy to accomplish. One should, however, attempt to develop boththe eligibility criteria, and later on the design criteria, through public participatorymechanisms. The design criteria should, for example, specify the maximum number ofpeople/families to be served by each connection (public tap), maximum distance forfetching water frorm a public tap, operation, management and tariff/payment principlesfor public taps, hours of service, etc.

Assessment of Rural Water and Saniitation 81

The SPS component is a pilot undertaking, and wider application of leamedlessons depends on the rate of success of the pilot schemes. It is therefore imperativethat externalfactors which may impede the sound development of individual SPSschemes (e.g. sanitation systems, roads, electricity supplies) are identified, analysed andifpossible incorporatedfor solution in the development program for a town.

Finally, the TORs for the feasibility studies should spell out criteria forappropriate technologies to be applied in the individual schemes, taking into accountthe local level of technical knowledge, desired standardization, existing water dealernetworks and future supply possibilities for equipment, spareparts and chemicals.

5.4 Summary of Recommendations

1. The feasibility studies of individual SPS projects should be prepared in a way tofacilitate proper environmental screening in accordance with the Bank's OD4.01. The scope of the TORsforfeasibility studies of individual projects shouldtherefore include relevant environmental issues forfurther investigation andassessment, if required.

2. The TORs for the feasibility studies should spell out criteria for appropriatetechnologies to be applied in the individual schemes.

3. Design criteria for the SPSshould be developed during the feasibility phase. Astartingpoint is to define the minimum criteria for people's access to water. Abasic principle would be that the criteria should be based on what people canafford.

4. It is imperative that externalfactors which may impede the sound developmentof individual SPS schemes (e.g. sanitation systems, roads, electricity supplies)are identified, analysed and ifpossible incorporatedfor solution in thedevelopment program for a town.

82 Assessment of Rural Water and Sanitation

Assessment of Water Resources Management 83

6. ASSESSMENT OF WATER RESOURCES MANAGEMENT

6.1 INTRODUCTION

The Water Resources Management component of the NWDP is comprised of individualstudies, institutional and capacity-building support and investments with the commonobjective of supporting the strengthening of water resources management both withinMozambique and with respect to the management of shared international rivers. Theobjectives of the Water Resources Management component include:

* Support to decentralized river basin management;* Investments in necessary rehabilitation of hydraulic works;* Reinforcement of Mozambique's capacity to operate as an equal partner in

intemational negotiations regarding water resources shared with other riparianstates; and

* Enhancement of co-operation at the river basin level.

The Water Resources Management component as presented to the EA team wascomprised of four sub-projects:

1. Management Development Plan for ARA-Sul (institution building)2. Corumana Dam Completion Works (feasibility study)3. Strengthening of Management of Shared Water Resources (preparatory study)4. Joint Incomati Study - Supplementary Work in Mozambique (investigation)

These sub-projects are still in the identification/pre-feasibility phase. A set offour draft terms of reference (TORs) for consultancies was prepared by the Bank andDNA on 6 March 1996 which specify the work to be done under the Water ResourcesManagement aspects of the NWDP.

As discussed in Section 4 of this report, the NWDP also involves several activitiesto study and determine the need for and feasibility of future activities and investments ineach of the urban water supply sub-projects. Where these involve abstractions fromrivers and associated hydrological investigations, and are appropriate for inclusion in thedesign of the Water Resources Management sub-project studies listed above, they areincorporated in the discussions below. The relevant aspects of the urban sub-projectsare:

Maputo* Increased surface water abstraction from the Umbeluzi River* Diversion of water from the Incomati, via the Movene, to the Umbeluzi River* Construction of a tansmission main/canal from the Incomati to the Movene River* Ground water abstraction in the Pateque-Manhica area

* Increased surface water abstraction from the Puingue River

84 Assessment of Water Resources Management

The approach taken to the environmental assessment of the Water ResourcesManagement component of the NWDP was to outline, for each sub-project, the issueswhich should be addressed to obtain environmentally sustainable development of thewater systems with which each is concemed. Each draft TOR was then reviewed andcomments were made concerning how they should be revised to better address theidentified issues.

6.2 MANAGEMENT DEVELOPMENT PLAN FOR ARA-SUL

6.2.1 Introduction

This sub-project concerns the creation of a development plan, and capacity-building andsupport, to the Regional Water Administrations (ARAs) which are key institutions ofthe new, decentralized water resources management structure in Mozambique. TheARAs will function as financially self-sustaining water resources management agencieswith responsibilities for bulk water delivery, hydrological services and water allocationconcessions. NWDP support will initially be concentrated on ARA-Sul, the SouthemRegion Water Administration. Based on experience gained in this region, thedevelopment of other high priority ARAs can be undertaken.

ARA-Sul's mandate includes all of southern Mozambique north to and includingthe Save River basin. Of the five cities which are part of the NWDP, this area includesonly Maputo and the rivers on which it depends for its water supply - the Umbeluziand, probably in the future, the Incomati.

6.2.2 Environmental Concerns Associated with Urban Water Supply

As discussed in detail in Section 4.3.4, the principal environmental concens with regardto the use of water in Maputo and the water balance in the Umbeluzi basin relate to:1. The minimum flow required downstream of the Maputo water intake to control

salinity intrusion and protect other ecological functions;2. Proposed future transfers of water from the Incomati to the Umbeluzi River to

augment Maputo raw water supplies; and3. Monitoring and management of the minimum flow being delivered across the border

from Swaziland.

To address these concerns, two major recommendations were made:

1. It is vital that good hydrological monitoring at the intake, and thorough analysis ofminimum flows required to meet domestic, industrial and a variety of downstreamecological demands, be carried out before maximum withdrawals available from theriver to supply Maputo are settled. Only with this information in hand will analysisof the requirements forfirm minimumflows from Swaziland and/or transfers fromthe Incomati River be possible.


2. The issue of minimumflows in the Umbeluzi below the Maputo intakes should be akeyfactor in the design of hydrological investigations planned under the Maputosub-project of the NWDP. Moreover, this and the Incomati and international riversissues should be addressed by the relevant Water Resources Managementcomponents of the NWDP.

All of these concerns fall within the mandate of ARA-Sul. They, and therecommendations which they precipitated, should be reflected in the scope of work forthe sub-project TOR.

6.2.3 Comments on the Terms of Reference

All comments refer to Section 3: Scope of Work.

Basic Considerations: Legal and Institutional FrameworkIn addition to identifying gaps and loopholes in the existing Water Act, the consultantshould identify overlaps and inconsistencies with other Acts and statutes regulatingwater management and use. Particular reference should be made to the MunicipalityAct.and new Land Act under preparation, in addition to the Water Act.

The role of ARA-Sul in the context of the new Environmental Act should beassessed, that is on environmental management issues with regard to protection andmanagement of water resources and on ARA-Sul's, and later the other ARA's relationswith MICOA.

Reponsibilities and Functioris: Hvdrology and Water QualitvMechanisms for improved collaboration and co-ordination with agriculture, forestry andirrigation authorities should be assessed.

As a separate item, the consultant should be directed to emphasize theimplementation of urgently-needed flow and water quality monitoring on the UmbeluziRiver system, perhaps as a "pilot" exercise to explore and develop ARA-Sul'scapabilities in a practical situation (see section 6.2.2 above).

Responsibilities and Functions: Bulk Water Suply and Water Demand ManagementSeveral studies have pointed at the increasing problem of salt water intrusion in riversalong the coastal plains. Minimum ecological flows have been calculated for some ofthe rivers (probably on weak data bases) -- that is, minimum flows during the dry seasonrequired to keep the salt water at bay. As demand for water increases, both nationallyand in upstream riparian states, it will be more difficult and costly to maintain minimumecological flows during dry seasons and drought periods. As a separate item, the TORshould direct the consultant to prepare a strategy for studying the salt water intrusionproblem with the aim of analyzing alternative solutions which are technically,economically and enviromnentally sound.

Beyond recommending policies and plans for the allocation of water amongvarious users, the TOR should direct the consultant to develop specific strategies and


study requirements to analyze minimum flow requirements and, where appropriate,reservoir operations, and to assess possibilities for improving hydrological regimes tobetter meet requirements for "environmental allocations and pollution control". Theserequirements should be specified in the TOR to include not only the management of saltwater intrusion but also, for example, the conservation of riparian habitats; the transport,dispersion and natural purification of waste waters; and the transport of suspendedsediment through important waterways and harbours. On this matter, the TOR shouldemphasize urgent requirements on the Umbeluzi River system.

Responsibilities and Functions: Environmental Protection and Pollution ControlThe "polluter pay principle", embodied in the National Water Policy, should behighlighted for consideration by the consultant, in particular in descriptions ofmechanisms for enforcement and control.

Responsibilities and Functions: Intemational River Basin IssuesThe TOR should require that the assessment of ARA-Sul's responsibilities in themanagement of intemational river basins be co-ordinated with the team working on the"Strengthening of Management of Shared Water Resources" preparatory study.

Organization and Management: Staff Development and IncentivesThe TOR should direct the consultant to include the integration of environmental"awareness-building" wherever appropriate and thus pioneer the development of anenvironmental culture in water resources management and pollution control. There areelements of environmental protection and natural resources management in traditionalrural cultures, but modem Mozambique has little, if any, environmental conservationtraditions.

Performance MonitornnThe performance monitoring systems should also incorporate some key environmentalmonitoring indicators.

6.3 CORUMANA DAM COMPLETION WORKS

6.3.1 Introduction

Corumana Dam in the Sabie river in the Incomati catchment area has not beencompleted up to standard, and it is necessaxy to carry out engineering design, costingand construction of the critical remaining works as part of this sub-project. It is alsoplanned to carry out a feasibility study to assess the development opportunities andpotential of this dam in order to identify and justify options for maximizingdevelopment benefits from the investigations to be made.

The scope of work to complete the Corumana Dam is contingent on the results ofthe subject feasibility study but could involve:* Protection of the downstream slope;* Stabilization of the river channel downstream of the spillway;* Provision of a security fence;


* Installation of lighting;* Upgrading of the 1.5 km access road; and* Installation of spillway gates to increase the storage volume.

The dam is already in place and, in early 1996, the reservoir was full. Thefeasibility study will probably not raise any new significant environmental issues. Onthe other hand, impacts from the completion work will by and large result in positiveeffects on the environment.


Feasibility of Increasing the Storage CapacityThe TOR do not envisage the need for installation of the spillway gates in theforeseeable future. However, the consultant is asked to assess the feasibility of thisoption. The study should therefore identify possible environmental impacts in case thespillway gates are to be installed, that is impacts from increasing the storage volume ofthe reservoir from 830 Mm' to 1,230 Mm3. Raising the water level will result in a largerflooded area, with possible impacts on human settlements, agriculture, forestry, flora,fauna and micro-climate. The TOR should direct the consultant to identify thesei.npacts in brief and indicate necessary restrictions. The viability of the option ofinstalling spillway gates should be analyzed not only in economic and technical termsbut also in natural and social environmental terms.

Stabilization of the River Channel Downstream of the SpillwayThe TOR should emphasize the need to protect not only the dam from erosion but alsothe downstream river channel.

Security FenceThe TOR should direct the consultant to investigated whether any traditional footpaths,crossings or housing unrelated to dam operations will be affected. If so, mitigation andcompensation measures should be proposed.

lender DocumentsEnvironmental concerns and mechanisms for maintaining worker safety etc. should beincorporated in the tender documents, indicating control and mitigating measures, andreporting procedures.

6.4 STRENGTHENING OF MANAGEMENT OF SHARED WATERRESOURCES

6.4.1 Introduction

Preliminary study and institutional support will be provided to establishing aninternational river basin unit (Gabinete dos Rios Intemacionais) within DNA which willbe the focal institution in Mozambique's negotiations with other riparian states about


water rights and mutual management and utilization of shared water resources. Thepreliminary study will serve as a basis for the five-year institutional support program.


As discussed in Sections 4.3 and 4.4 of this report on urban water supply, Maputo andBeira depend on rivers shared with other countries -- Swaziland, South Africa andZimbabwe. The international aspects of the environmental concerns for the watersupply to Maputo, first raised in Section 4.3, were reiterated above in Section 6.2concerning the management development plan for ARA-Sul, and will not be repeatedhere.

For Beira, the increased abstraction of raw water from the Puingue River wouldprobably not cause any significant environmental impact. This statement, however,assumes that restrictions on water use for irrigation are enforced to maintain a minimumdownstream flow and that a satisfactory agreement is reached with Zimbabwe withregard to the shared water resources of Pungue River. The recommendation was thatDNA and/or the new ARA Central should monitor water demands on the Pungue Riverfrom irrigation in Mozambique and from Zimbabwe. Should these demands plus watersupply to Beira indicate potential problems with maintaining minimum flows in thelower river, more detailed hydrological analysis should be carried out to assist inresolving competing water demands.

These city-based factors highlight one dimension of the need for Mozambique tohave a much stronger capacity to assess its own water needs, to analyze cross-borderflows in its international rivers with a view to detennining its requirements in thoseflows, and to negotiate acceptable arrangements with upstream riparian states for actualreceipt of those flows.


The TOR focus on legal, procedural and institutional capacity issues, whereas theapparent enviromnental imperatives for improved water resources sharing mechanismsreceive little prominence. The TOR should highlight the issue of sound enviromnentalmanagement as a fundamental basis for assessing equitable sharing and use of water.

The TOR should further recognize the fact that securing Mozambique's interestsand rights with regard to cross-border water resources management may represent themost significant factor when it comes to the country's ability to sustain environmentaland natural resources management in the southem and central regions of the country.

Staffing of the team of consultants should reflect the importance of this issue. Inparticular, the water resources management and river basin expert must beknowledgeable about both human and ecological values associated with water, and withthe complexities of making choices among competing values and uses for water.


6.5 JOINT INCOMATI STUDY - SUPPLEMENTARY WORK INMOZAMBIQUE

6.5.1 Introduction

This will be the first of five studies to support Mozambique's participation in jointintemational river basin studies concerning the Incomati, Pungue, Limpopo, Save andUmbeluzi River basins. These studies are crucial for enhancing a good climate forcooperation, and for establishing a common base for monitoring, management anddevelopment of watercourses with other countries.


Of concern here is the prospect of water transfers from the Incomati to the UmbeluziRiver to supply Maputo. Analyses of Mozambican water demands on the Incomatimust consider the amount and location of potential abstractions for this purpose. Flowsdownstream of the abstraction point must be left sufficient to accommodate both human,irrigational and ecological requirements for water, especially with respect to minimumflows.


Water Related DevelopmentCriteria for evaluating potential development alternatives should include environmentalcriteria in addition to "economic, financial and social". Such criteria should addressminimum requirements for ecological flows at different times of the year and at keypoints in the river. Factors to consider include the management of salt water intrusion;the conservation of riparian habitats; the transport, dispersion and natural purification ofwaste waters; and the transport of suspended sediment through important waterways andharbours.

Dams and RegulationAssessment of the hydrological regime and development regime of the Corumana Damshould be done in close collaboration with the team on the Corumana feasibility study.As discussed in Section 6.3.2, an environmental point of view should be taken inaddition to technical and economic, especially when considering the effects of raisingthe flood level of the dam.

EnvirormnThe reference to mitigation measures should give, as examples, the specification ofminimum flows at different times of the year and at different locations on the river, andthe conservation of important riparian habitats and wetlands.


4

Environmental Monitoring and Management 91

7. ENVIRONMENTAL MANAGEMENT PLAN

7.1 INTRODUCTION

The final part of this report addresses a number of matters concerning the environmentalmanagement of NWDP activities. The first three sections provide guidance on thelocation, planning, design, construction and operation of project facilities to maximizethe opporunities for good environmental perfonnance. They complement discussionson issues common to all project cities/towns presented at the beginning of Section 4.The fourth section addresses the vital and sometimes sensitive issue of resettlement ofpeople from lands required by the project. The fifth and sixth sections concem themonitoring of project activities, and the management of those activities based, in part,on monitoring information. Finally, matters related to enviromnental awareness-building and training are discussed.

7.2 LOCATION, PLANNING AND DESIGN

7.2.1 Refurbishment/Expansion of Existing Treatment Plants

All new investments should be analyzed in terms of their capital costs, their operatingand maintenance requirements, their reliability on foreign equipment and spareparts,etc. If choices are to be made between more or less equal alternatives, processes andequipment of the same type or similar to the existing ones should be chosen. Differentdesigns and operational routines will increase the risk of faulty operation and the needfor a large number of different spare parts, thus adversely affecting the safety of andpossibilities for proper maintenance and quick repair of breakdowns.

7.2.2 Distribution Systems

Wherever possible, new distribution systems should be located to avoid existing housesand infrastructure, and thus the need to relocate them and, perhaps, people who live inthem.

Routing of pipes through areas polluted by industral and human wastes willprobably be unavoidable. Proper design is particularly important in such areas. Careshould be taken to choose the right pipe-material. Pit latrines and garbage dumpsshould be cleaned and closed and new locations sited if necessary.

Ifwater and wastewater pipelines are to be located in the same trench, careshould be taken to have the water pipeline at a higher level than the sewer. This willhelp to avoid direct leakage of polluted water into leaky, non-pressurized water pipesduring hours of no supply, or while repair works are carried out. Where possible, waterand wastewater pipelines should be routed in separate trenches or on different sides ofa road. This is safer but generally more expensive.

92 Environmental Monitoring and Management

7.3 CONSTRUCTION

Wherever possible, water companies should use local contractors, skilled and unskilledworkers from each of the cities in which NWDP construction will take place. BeforeDNA approves any construction contracts, it should assure itself that water companyoperators, and any general contractors involved, have thoroughly investigated theavailability of local companies and workers for the contract, and have maximized theopportunities for them to be involved in the construction work

Standard environmental construction requirements for the project are detailedbelow. It is vital that these requirements are incorporated into general and specificconstruction contract specifications for all works being funded by the NWDP.

7.3.1 Water Sources and Treatment Plants

* Soil erosion and silt run-off from construction sites should be carefully prevented,since this could easily find its way into drainage and water courses.

* Noise, dust and air emissions should be minimized by use of modern equipment,awareness and attentive construction practices, especially in populated areas.

D The use of toxic and polluting substances during construction should be avoided orminimised remembering that such substances will have direct impact on soils andwater quality.

* Proper housing and sanitary facilities for workers must be provided, and storageareas kept fenced and guarded.

* Oils and chemicals must be prevented from seeping into the ground or into drainageand water courses. Oil spills from construction machines must be avoided, and usedoils and lubricants should be collected and disposed safely out of the working area.

o Construction sites must be left clean and tidy. After completion of the constructionwork, all temporary installations must be removed.

* Construction hazards will not be significant providing safety precautions and controlare imposed on the labour force.

7.3.2 Transmission and Storage

* Pipeline trenches should be backfilled as soon as possible after laying of pipes andpressure testing, thus reducing the risk constituted by open trenches.

* Trenches should be carefully backfilled, using proper materials, and compacted toavoid later subsidence, uneven surfaces and erosion. Paved areas should becarefully restored. Top soil with vegetation should be replaced where applicable toavoid erosion.

* Noise, dust and air emissions should be minimized by use of modern equipment,awareness and attentive construction practices, especially in populated areas.

* Proper housing and sanitary installations for workers, and fenced and equippedstores and storage areas must be arranged. Spilling of oil must be avoided.

* All temporary structures, fences and leftovers must be removed after completion ofworks.



* Pipeline construction in populated areas creates problems for traffic and access tohouses. Care should be taken, during design if necessary, to section the work insuch a manner that these problems are minimized.

* Trenches should be backfilled as soon as possible after laying of pipes, thusreducing the risk, particularly to children, constituted by open trenches.

* Trenches should be carefully backfilled, using proper materials, and compacted asnecessary to avoid later subsidence, uneven surfaces and erosion. Paved groundsshould be carefully restored. Top soil with vegetation should be replaced whereapplicable to avoid erosion. Contracts should require that the contractor return todisturbed sites to repair later-occurring damages caused by the excavations.

* Proper housing and sanitary installations for workers, and fenced and equippedstores and storage areas must be arranged.

* All temporary houses, fences and leftovers must be removed after completion.

7.4 OPERATION

7.4.1 Water Sources and Treatment Plants

* Operation and maintenance (O & M) manuals, and suitable staff training, must besupplied and adhered to, particularly regarding the handling of chemicals.

* Intake water quality should be monitored regularly to establish whether unknownsubstances or minerals are adversely affecting the quality of drinking water.

7A.2 Transmission and Storage

* Pipeline routes should be inspected regularly against leakage and valve chambervandalism, and to avoid illegal connections.

* Significant leakage will cause erosion and flooding, and should be prevented byautomatic monitoring of pressure or flow, thus stopping the pumps on suchoccasions. All leakage must be attended to immediately to avoid damages.

* Valves should be checked and manoeuvred regularly to secure their functioningwhen required for proper operation of the transmission system.


* The pipeline routes should be inspected regularly to make sure that all manhole lidsare in place, and that no illegal connections are being attempted.

* Significant leakage will be reported by the public, but inspection should includeawareness of unexpected growth of grass and weeds during the dry season. Flowmeasurements should be carried out according to a pre-set schedule or wheneverleakage is suspected. Leakage must be repaired immediately to prevent erosion andflooding.


* Water samples from taps on the reticulation system should be analyzed regularly assafety against pollution.

* Valves should be inspected and manoeuvred at regular intervals to secure theirfunctioning whenever required.

7.5 RESETTLEMENT

As indicated in Section 4, some of the investments of the NWDP will influence existinghousing and settlements, in particular farmers along transmission mains and makeshifthousing in peri-urban areas. Where possible, specific resettlement needs wereidentified. In most cases, such as in the location of distribution systems, projectplanning has not progressed far enough to identify specific resettlement requirements,time tables and budgets. What this study provides is guidance and the basis for future,more detailed resettlement planning.

There are established procedures for expropriation and forced resettlements inthe Land Act of 1979 (see Section 2.2.2). Although the Act presupposes that the settlerhave legal title to the land, recent practice has been to offer compensation and title tonew settlements regardless of whether incumbents held titles previously. The entitycausing the need for resettlement must bear all the costs involved. With particularreference to Maputo, the City Council developed in 1988/9 a resettlement model whichreportedly has been used with success on a number of occasions.

As well, the Bank's Operational Directive 4.30 on involuntary resettlementprovides specific policy guidance which should be adhered to during implementation ofthe NWDP. OD 4.30 states that:

1. Involuntary resettlement should be avoided or minimized where feasible, exploringall viable alternative project designs.

2. Where displacement is unavoidable, resettlement plans should be developed. Allinvoluntary resettlement should be conceived and executed as developmentprograms. Displaced persons should be (i) compensated for their losses at fullreplacement cost prior to the actual move, (ii) assisted with the move and supportedduring the transition period in the resettlement site, and (iii) assisted in their effortsto improve their former living standards, income earning capacity, and productionlevels, or at least restore them.

3. Community participation in planning and implementing resettlement should beencouraged.

4. Resettlers should be integrated socially and economically into host communities.5. Land, housing, infrastructure and other compensation should be provided to

adversely affected [people] ... who may have usufruct or customary rights to land orother resources taken for the project. The absence of legal title to land ... should notbe a bar to compensation.

Without in any way commenting on the intentions or practices of thegovernment or institutions in Mozambique, it must be noted that, in far too many cases,involuntary resettlement programs around the world have fallen far short of


expectations. A key reason is that project loans have not included resettlement costs,they are planned to be covered from other govemment funds and, for one reason oranother, these funds have not been forthcoming. Thus, it is strongly recommended thatresettlement plans should be prepared early in the planning process, and their financingand execution should be implemented with the support of the donor (NWDP). TheProject Unit should assist the relevant Municipality councils and implementingagencies as required.

The following procedures are recommended in general for involuntaryresettlement necessitated by the NWDP:

1. Areas being influenced by installations and construction works, including floodedareas, protected areas, storage and constr iction areas, should be marked on mapsand/or demarcated during the detailed planning stage. Maps should be at a scaleallowing identification of affected houses and settlements in the field. Wherepossible, project works should be designed or located to avoid the need forresettlement, for example in the location of pipelines, storage tanks and distributionsystems.

2. The implementing agency, supported by the Project Unit, should carry out a specificstudy of resettlement needs when the need is apparent or, if a significant number offamilies are identified for resettlement, engage a consultant with socio-economicand legal experience for the task. The study should register names, number offamily members, standards and approximate values of houses and otherimmovables, affected areas, land use, crops etc. Particular attention must be paid tospecial places which may be affected such as graves and spiritual sites, and to localpractices required to manage the disruption involved. In collaboration with theMunicipality Council, the study should identify suitable resettlement areas andcalculate costs for moving people and movables, and constructing new houses,infrastructure and other compensations. The study should also assess indirect effectsof ruptures to traditional and social bonds such as ethnic linkages (e.g. the Macuapeople in the bainro Mafalala in Maputo) and develop appropriate strategies fordealing with these effects. These could include, for example, moving entire groupstogether and supporting the groups in undertaking traditional practices involved inmoving. Finally a detailed plan for resettlement should be developed incollaboration with the Council and the secretary of the bairro/village. The Bank'sOD 4.30 provides a useful reference in developing resettlement plans.

3. Throughout the process of developing and implementing resettlement plans, affectedpeople, families and communities must be consulted concerning the overall process,and their needs and desires for adequate relocation.

4. A minimum of three months notice prior to moving must be given orally and inwriting, in accordance with the expropriation regulations of the Land Act.

5. Negotiations should take place with each individual family or groups of families onone side, and the implementing agency and the respective Municipality council onthe other. The secretary of the bairro/village should act as a mediator.


6. The Municipality council will be responsible for coordination and monitoring of theresettlement activities and for necessary logistical arrangements regarding movingand resettlement, with the costs to be covered by the implementing agency. Reportsshould be prepared by the implementing agency on the execution of the resettlementplan to be presented to the DNA Project Unit and the respective MunicipalityCouncil.

7. Compensation should be based on full replacement and moving costs, and be paidwithout delay before the actual move. If appropriate, the implementing agency orthe Council should supervise the building of new houses for resettled families,replanting of fruit trees, etc. In some cases, additional cash compensation should beconsidered to support displaced families while they restore their livelihoods at thenew locations.

7.6 ENVIRONMENTAL MONITORING AND MANAGEMENT

Apart from normal monitoring and management by the Bank and DNA of contracts andother activities under the NWDP, the needs for environmental monitoring andmanagement during project implementation are expected to be largely limited toensuring compliance with:

1. Environmental specifications contained in construction contracts, as discussed inSection 7.3 above.

2. Resettlement planning and implementation, as discussed in Section 7.5 above.

The project "owner" will be the National Directorate of Water (DNA) which willthus have a major responsibility for monitoring and management of the environmentalaspects of planning and implementation of the NWDP. In practice, the Project Unit(with a Project Co-ordinator) to be established under the National Director of DNAshould carry out these functions as an integral part of its roles of supervision andmonitoring of the various components of the project. A separate chapter of regularproject reports to be prepared by the DNA Project Co-ordinator should deal withenvironmental aspects of the various components as indicated and described in this EAreport and any later EA reports.

Reporting procedures should follow lines of command to be established forplanning, implementation, operation, supervision and management of the variousNWDP components. Thus the Provincial MOPH and/or the SUPRAs (ad hocconstruction supervisory units established by DNA at the Provincial MOPH forparticular water supply construction projects), and the new management of the watercompanies may be assigned monitoring and management functions. In principle, thewater companies should monitor and manage their contractors and DNA (central orprovincial) should monitor the water companies and, occasionally, contractors in thefield.

The regular reports will be scrutinized by MOPH and the WB supervisorymissions. MICOA (and its future Centre for Environmental Monitoring) should receive


copies of the reports (environmental section) to enable the Ministry to monitor DNA forcompliance with provisions of the environmental assessment and issue directives or takeany other appropriate action. MICOA may also carry out ad hoc field monitoringsurveys.

ARA-Sul (for Maputo Urban Water Supply sub-project, and sub-projects of theWater Resources Management component), and the other ARAs (when established) willin accordance with their mandate monitor water use, flow regimes and otherhydrological aspects of water resources management carried out by the watercompanies. These aspects should also, as appropriate, be incorporated in the regulardata collection and reporting procedures of the water companies/implementing agencies.Resettlement planning and implementation (see Section 7.5) should be monitored by theDNA Project Unit.

The Ministry of Health (through the provincial health administrations/laboratories) should continue monitoring of water quality. The quality of samplecollection, laboratory testing and reporting routines needs to be improved, andprocedures for follow up actions on the analysis reports should be developed. TheNWDP should, in co-operation with other health support projects, assist in improvingmonitoring of people's health and hygiene situation in the areas of influence of theproject. It would be appropriate to include this issue in the WB Staff Appraisal Report.

Currently there are no mechanisms in place for pollution monitoring and control.Relevant for this project would be monitoring of the quality of raw water and ofdownstream waters receiving sludge and backwash water from the treatment plants. Inthe absence of relevant institutions, the water companies should be instructed to caryout required testing and monitoring as part of the regular reporting procedures.

The EA report does not envisage any formal role of the relevant municipality/city councils, since the Municipality Act has not yet been made effective. However,after the establishment of functional administrations in compliance with the Act (e.g.after the dust has settled from the oncoming direct elections), an adequate role for thecouncils should be designed in the environmental monitoring plan for the project.

7.7 ENVIRONMENTAL AWARENESS-BUILDING AND TRAINING

Few training needs will be required beyond those embodied in the capacity-buildingelements of the NWDP. Training will be required for personnel of DNA (and provincialMOPH] SUPRA), MICOA and private-sector water company management andoperational staff to monitor and supervise enviromnental performance duringconstruction of new and refurbished works being funded by the project. The DNAProject Unit should conduct a workshop for key personnel of these institutions on therecommendations of the EA report and how they should be imnplemented.

The water companies should make field staff aware of environmental provisionsof construction contracts, and train them in altemative practices for dealing withenvironmental concerns on-site. Training of key personnel of the water companies in


supervising these practices could possibly be included in the workshop mentionedabove, or other training schedules of the institution-building efforts of the DNA Project

Unit.

References 99

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References 101

World Bank. 1996b. Mozambique Proposed National Water Resources Management andDevelopment Project. Aide Memoire, 1 March 1996.

World Bank. (not dated). Mozambique: Country Environmental Strategy Paper(Draft).

102 References

4

Inception Report and Terms of Reference 103

APPEDIX A:INCEPTION REPORT AND TERMS OF REFERENCE

THE WORLD BANK

MOZAMBIQUE NATIONAL WATER RESOURCES MANAGEMENT ANDDEVELOPMENT PROJECT

INCEPTION REPORTon the

ENVIRONMENTAL ASSESSMENTconcerning

SCOPING AND INTERPRETATION OF THE TERMS OF REFERENCE

by

John BoyleArne Dahlen

NORAGRICCentre for International Environment and Development Studies

Norway

March 1, 1996


l


CONTENTS

Introduction 107

2. General Assessment Approaches 1072.1 Urban Sanitation 1072.2 Construction Activities 1082.3 Water Quantity Management 1092.4 Resettlement 1102.5 Public Consultation 110

3. Project Activities to be Assessed 1103.1 Maputo 1113.2 Beira 1113.3 Nampula ll3.4 Pemba 1113.5 Quelimane 1113.6 Water Resources Management 1123.7 Rural Water and Sanitation 112

4. Deternination of Potential Impacts 113

5. Study Area 113

Terms of Reference 115


.I


THE WORLD BANK

MOZAMBIQUE NATIONAL WATER RESOURCES MANAGEMENT ANDDEVELOPMENT PROJECT

INCEPTION REPORT on theENVIRONMENTAL ASSESSMENT concerning

SCOPING AND INTERPRETATION OF THE TERMS OF REFERENCE

1. INTRODUCTION

This inception report was based on descriptions of proposed project investmentsprovided by the World Bank, on project details from the "Provincial Towns WaterSector Study" prepared by DHV Consultants BV of the Netherlands (DHV 1994), andon discussions with members of the Bank's project preparation mission toMozambique over the 20-29 February 1996 period. Guiding documents wereprimarily the EA terms of reference (TOR) of 30 January 1996 provided by the Bankand annexed to this report, and relevant Bank policies and documents, notably:

*Environmental Assessment Sourcebook;- OD 4.01, Environmental Assessment;3 OD 4.30, Involuntary Resettlement; and

AFTES "Environmental Assessment and Review in Sub-Saharan Africa",1995

Also taken into account were Mozambique's draft environmental managementlaw and draft EIA regulations.

This inception report deals with Noragric's interpretation of some elements ofthe TOR and with the proposed scope of the EA itself. The TOR are vezycomprehensive and require interpretation and scoping because of the nature of theproject and because this is a Category B project rather than Category A. Category Bprojects require "environmental analysis" rather than the "full EA" required ofCategory A projects. The report makes some specific interpretation and scopingproposals for which Noragric requires Bank approval to ensure that the EA will meetthe Bank's project preparation needs. Because of the urgent time fiame on which theEA is to be prepared, this approval is needed as soon as possible. Nonetheless,Noragric will proceed with the EA on the basis of the proposals contained in thisreport so that no time is lost and the EA can be completed in a timely fashion.

2. GENERAL ASSESSMENT APPROACHES

2.1 Urban Sanitation

This five-year water supply project is part of a much larger country assistance strategybeing implemented in Mozambique by the Bank (World Bank 1995). Specifically,


this project, expected to begin in 1997, will overlap with a "Water, Sanitation andLocal Government Project" which will address sanitation and other urban needs and isexpected to begin in 1999 (Shepherd 1996). Moreover, GoM has recently concludedan agreement with DHV Consultants to undertake a four-year program (DHV 1995)which comprises institutional strengthening for environmental management withinGoM; the development of a master plan for sanitation, drainage and environment in13 cities, including the five incorporated in this project; and the development of acoastal zone environmental management plan. Because of the close relationshipbetween the water supply aspects of this Bank project, the sanitation aspects of thesecond Bank project and the DHV program, this Bank project will include, at therequest of the GoM, provisions for coordination of the three initiatives to ensure that aholistic, integrated result is obtained in the management of urban water services in thefive cities (Shepherd 1996).

Clearly, increasing urban water supply without making complementaryimprovements to drainage, sewerage and waste water treatment is a prescription forsubstantial negative effects on human health and pollution. An EA of such a projectwould have to assess these effects very thoroughly. The Bank's TOR acknowledgesthis risk by specifying that the EA "make recommendations for the propermanagement of the wastewater produced by the various urban water supply sub-components of the project." However, this water supply project will be closely linkedto a second program of investment in drainage, sewerage and waste water treatmentworks. Thus, it is proposed that this EA omit assessment of the health and pollutioneffects of this project which would increase water supplies without, at the same time,making parallel improvements to sanitation workss. The EA should consider whatmonitoring of health and pollution indicators will be required both to identify impactsand design mitigation measures should the second project not proceed, and to provideinformnation for the planning of that project. The EA of the second sanitation projectshould include an assessment of health and pollution effects.

This is a significant scoping proposal which must be seriously evaluated by theBank. Accepting the proposal presumes a firm commitment by both the Bank and theGovernment of Mozambique to the timely implementation of the second project.Proceeding with this water supply project in the absence of such commitment couldresult in substantial negative impacts on pollution and urban environmental health.

2.2 Construction Activities

By far the largest component of the project is rehabilitation or upgrading of existingfacilities involving no disturbances of new sites. All project sites should be examinedfor environmentally sensitive aspects but it is expected that most environmentalprotection requirements during construction can be adequately managed usingstandard, general construction contract requirements (eg. for trench openings, erosioncontrol, dust suppression) coupled with supervision and monitoring. These generalenvironmental requirements should be developed during the EA and form part of theenvironmental management plan. Thus, most activities for the rehabilitation orupgrading of existing facilities need not be analyzed in the EA. Any sensitive aspects


on particular existing sites/routes (eg. resettlement) should be addressed with site-specific recommendations and construction contract requirements.

Previously undeveloped sites (eg. Inhamizua ground level reservoir near Beira)should be examined and specific siting and construction managementrecommendations made.

2.3 Water Quantity Management

The project is intended to bring new water supplies to urban areas and it is thusexpected that demands on both surface and ground water resources will be increased.In addition to the supply of potable water, other demands and values associated withwater resources may be affected if urban water withdrawals are significant enough.These include:

Irrigation: Reductions to the availability of irrigation water can haveconsequent effects on agricultural production, land use andsocio-economic factors.

Waste dispersion: Flow reductions in rivers can leave less flow to carry away anddisperse, for example, agricultural chemicals, urban wastewater and silt with consequent downstream effects on waterquality and dependent water uses such as domestic watersupply, tourism and fisheries.

Salt intrusion: Reduced river flows can result in more extensive upstreamintrusion of salt water and consequent effects on aquatic lifeand water suitability for irrigation and urban water supply.Ground water withdrawals can similarly cause saline intrusion,reductions in water availability for human use, and ecologicaleffects.

Ecological functions: Reduced flows in rivers, along with consequent water qualitychanges, can affect aquatic environments. Ground waterabstraction can lower water tables and have consequentecological effects.

It will be important in the EA to try to forecast and quantify the downstream andground water effects of increased water withdrawals precipitated by the project. Atthe same time, hydrological and hydrogeological data are sparse in Mozambique, itmay not be possible to even estimate these effects, and the project includes asubstantial component of monitoring and research on specific water systems and ofdevelopment of water resources management capacity. Where the EA cannotrealistically forecast the effects of water withdrawals, recommendations should bemade for focusing these research and management efforts, in part, on (1) quantifyingavailable water, (2) analyzing the socio-economic and environmental trade-offs


between-competing water uses, and (3) developing measures for managing theenvironmental effects of water abstraction for human use (eg. setting minimum riverflows to keep downstream effects within acceptable limits).

More generally, the TOR specify that the EA "assess the mechanisms proposedby which Mozambique is to seek to increase its security of supply from internationalriver basins" (Page 1, Section 2). This is a very "big" question relating to the capacityof Mozambique to both understand and manage its water resources (which the projectis intended to strengthen), and to its ability to negotiate and ensure compliance withinternational water basin management agreements. Noragric feels that a thoroughassessment of this matter is possible only within the broader mandate of a sectoral EAof the entire water sector in the country. Nonetheless, the issues which need to beaddressed in such a sectoral EA, and in securing water supplies from these basins, canbe identified during this project EA. These results could be used in conducting such asectoral EA and/or as suggestions for detailing the capacity building elements of thisproject for water resources management in international river basins.

2.4 Resettlement

The project is expected to involve little, if any, resettlement. It might occur, forexample, in:* the siting of new works (eg. new storage tanks, expanded distribution systems);* the upgrading of existing works where people have settled in working areas (eg.

main transmission lines); and* the construction of new dams (eg. Nampula, Quelimane)

Where the location of project works is known, these should be surveyed andresettlement estimates and strategies prepared based, in part, on consultations withindividuals, families and groups which may be affected. Where they are not known,the potential need for resettlement should be recommended for future study. In eithercase, resettlement policy, principles and guidelines should be recommended in the EAand contribute to the preparation of a separate resettlement plan as called for in theTOR.

2.5 Public Consultation

OD 4.01 (paragraph 19) specifies that EA studies include consultation with affectedgroups and local NGOs "to understand both the nature and extent of any social orenvironmental impact and the acceptability of proposed mitigatory measures,particularly to affected groups". On this project, the major project components likelyto be of concern to the public are the introduction of new tariffs for water, theextension of distribution networks and, perhaps, the linkages between increased watersupply and improved sanitation works. None of these components are sufficientlydefined to be adequately considered in the EA and the first two are the focus of themajor beneficiary study being undertaken as part of project preparation. It isproposed that the EA not consult the public on these issues but recommend meansforthe beneficiary study to address them. The only other issue which may concern the

Inception Report and Terms of Reference Il l

public is.the potential need to resettle people from project work areas. This issue wasdiscussed above.

3. PROJECT ACTIVITIES TO BE ASSESSED

Project activities on which the EA should focus are summarized below. First, the fiveurban sub-projects are discussed, and then the more general water resourcesmanagement and rural water and sanitation sub-projects. For the towns, a distinctionis made between those activities which may cause significant effects and those forwhich effects are likely to be minor. As discussed above (Section 2.2), routineactivities which involve the rehabilitation or upgrading of existing facilities are notlisted.

3.1 Maputo

Significant environmental effects* increase surface water abstraction from Umbeluzi River

Minor environmental effects* new intake and treatment plant* extension of distribution network

3.2 Beira

Significant environmental effects* increase surface water abstraction from Pungue River

Minor environmental effects* new intake* new ground level reservoirs at Inhamizua and Dondo

3.3 Nampula

Significant environmental effects* increase surface water abstraction from Monapo River

Minor environmental effects* new transmission main* new ground level reservoir at PS4* district pumping station* extension of distribution network

3.4 Pemba

Significant environmental effects* increase ground water abstractions from existing Metuge well field


Minor environmental effects* extension of distribution network

3.5 Quelimane

Significant environmental effects* increased surface water abstractions from Licauri River

Minor environmental effects* small weir and new intake on the Licauri River* transmission main from river to treatment plant* new transmission main from treatment plant to town* new ground level storage reservoir in town* extension of distribution system

3.6 Water Resources Management

The only capital works in this sub-project are those associated with completing theCorumana Dam. Undertaking these works is contingent on the results of a feasibilitystudy but could involve:? protection of the downstream slope;e stabilization of the river channel downstream of the spillway;- provision of a security fence;e installation of lighting;

- upgrading of the 1.5 lan access road; and- installation of spillway gates to increase the storage volume.

The project involves several activities to study and determine the need for andfeasibility of future activities and investments which are not part of the currentproject. Some of these may have significant environmental effects which should bestudied in the course of the project. They are:

Maputo* diversion of water from Incomati, via Movene, to Umbeluzi Rivers* construction of transmission main/canal from Incomati to Movene River* ground water abstraction from Pateque-Manhica area

Nampula* construction of dam and reservoir upstream of present reservoir on Monapo River

Pemba* ground water abstraction from extended Metuge well field

Quelimane* construction of a dam and reservoir on the Licauri River


3.7 Rural Water and Sanitation

This part of the project is still being developed but is expected to include thedevelopment/strengthening of community-based water users' associations in rural towns and pen-urban districts; community-led design of small piped water systems and sanitationworks; and subsequent project investments in these systems/works. As specific townshave not been identified, the EA will simply provide recommendations/guidelines onhow these systems/works may best be implemented to be environmentally and socially sustainable.

4. DETERMINATION OF POTENTIAL IMPACTS

Based on the above discussion, the potential impacts to be assessed would include:

i) Project Location: possible resettlement of people; loss of forest land; loss ofagricultural land (cropping and grazing); impact on flora and fauna; impact onhistoric and cultural sites; effects on water resources inside the command area.

ii) Project Design: disruption of surface water and ground water resources;drainage problems; design of constructions and other structures; crossings forpeople and animals.

iii) Construction Works: soil erosion; noise; traffic and other safety issues;management of construction spoils; dust suppression; sanitary conditions andhealth risks associated with construction carnp and workers coming into area;social and cultural conflicts between imported workers and local people.

iv) Project Operation: changes in surface water quantities and qualities withinaffected drainages; changes in ground water levels within command areas;consequent effects on other water uses and values.

5. STUDY AREA

The geographic areas for the EA should be those specified in the TOR, modifiedaccording to the general assessment approaches proposed in Section 2, and thediscussion of project activities to be assessed discussed in Section 3. The proposedareas will thus be:

i) the five cities (Maputo, Beira, Nampula, Pemba and Quelimane) that are thefocus of the urban water supply investments, their water intake areas and themain catchlnent and/or ground water systems (including their recharge areas)which supply them; and

ii) the Cormuna Dam.


iii) the limited number of rural towns for which piped water supply systems will beupgraded and/or rehabilitated.


Draft Terms of Reference (TOR) for the Environmental Assessment of the Mozambique WaterResources Management and Development (MWRMDP) Project.

Cyprian Fisiy with Jean-Roger Mercier (AFTES)Revised version by John Sheperd/Torbjorn Damhaug, January 30, 1996

1. IntroductionMozambique is under reconstruction and its environmental problems have beenidentified and solutions proposed from the Bank's perspective in the CESP. The watersector approach taken in this project and in this EA is consistent with the need to planthe use of this natural resource and should also be consistent with the regional waterResources management strategy being designed by the World Bank in a veryparticipatory way.

2. ObjectivesThe Objectives of the EA will be to identify the possible negative enviromnentalimpacts of the project as presently designed and propose the required mitigatingmeasures to be implemented to avoid these negative imipacts. The EA will also

J highlight the positive impacts of the project on the water sector.

At this stage of the screening process, the negative impacts should be coming from thephysical investments financed, notably the infrastructure and equipment components,with the possible following impacts:

- general nuisance of the construction works and their healthand safety hazards,

- water pollution, both inland and marine,- water quantity management, e.g. in a transboundary context (the EAwill assess the mechanisms proposed by which Mozambique is toseek to increase its security of supply from international river basins.

The EA will also take the water cycle as a whole and make recommendations for theproper management of the wastewater produced by the various urban water supplysub-components of the project.

Although involuntary resettlement is not anticipated at this point in the preparation,should it become an issue subsequently, a separate resettlement plan will be required.

The Project proposes the enhancement of the performance in water resourcesmanagement and urban water supply and sanitation through projects incorporatinginstitutional reforms and capacity building. The EA will assess likely effects of otherproposals under the Project on the enhancement of urban and rural environmentalconditions.


These terms of reference have been drafted with the objective that the EA would beover, endorsed by the Government of Mozambique /GoM) and cleared in the Bank(AFTES) before the appraisal mission.

3. Environmental Assessment RequirementsThe EA will seek to ensure that the project complies with the relevant guidelines andrequirements of the following:

- World Bank Operational Directive 4.01 "EnvironmentalAssessment," and related guidelines such as O.D. 4.30"Involuntary Resettlement";

- national laws and/or regulations on environmental reviewsand impact assessments;

- regional, provincial or communal environmentalassessments regulations;

- environmental assessment regulations of any other financingorganisations involved in the project

- The National Environmental Action Plan (NEAP)

4. Study AreaThe core areas for the study include: (i) the five cities (Maputo, Beira, Quelimane,Pemba and Napula) that are the focus of the urban water supply investments, theirwater intake areas, wastewater discharge locations, and affected water surface waters,and the main catchment and/or groundwater systems (including their recharge areas)which supply them; (ii) the Corumana Dam and its basin; (iii) a limited number ofrural towns for which piped water supply systems will be upgiraded and/orrehabilitated. The precise boundaries of the study area for the Assessment (e.g., watercatchment) will be decided upon during the initial exercise of the EA.

5. TasksS. Scope of Work.Some of the technical and economic/financial as well as institutional information onthe project is till being refined. The consultants will take stock of all relevant existinginformation at the time of starting EA preparation.

Description of the Proposed Project:The Project is described in the attached Project Identification Document (PID).Details of the proposed investments will be provided for the Consultants. This taskwill take stock of the project components as they stand now and will break them down


according to the type of works in order to ease the identification of their likelyenvironmental impacts. A convenient way to do so is to break down each activity intothe following phases: construction, maintenance, development of activities pennittedby the works (e.g. design of the water supply systems, land clearing and acquisitionwork, laying out the pipes etc.)

Description of the environmentThe consultants will assemble, evaluate and present baseline data on the relevantenvironmental characteristics of the study area. These will include information on anychanges anticipated before the project commences. The first task of the EA will be thescoping phase. This will include a preliminary reconnaissance of the likelyenvironmental impacts of the project. Within the areas likely to be impacted thefollowing environmental impacts will be collated when relevant:

(a) Physical environment: geology; topography; soils; climate and meteorology;ambient air quality; surface and ground-water hydrology; coastal and oceanicparameters; existing sources of air emissions; existing water pollution discharges; andreceiving water quality.

(b) Biological environment (especially in rural areas): flora; fauna; rare or endangeredspecies; sensitive habitats, including parks or preserves, significant natural sites, etc.;species of commercial importance, and species with potential to become nuisances,vectors or dangerous.

(c) Socio-economic environment: land use (including current crops and croppingpattems); land tenure and land titling; human settlements, human health indicators,present water supply and water uses (including current distribution of water Resourcesif irrigation systems already exist in area); control over allocation of resource userights.

The consultants will make use of the abundant data collected for the preparation of theCESP/NEAP and the Beneficiary Assessment which will be carried out in parallel aspart of the project preparations.

Legislative and Regulatory Considerations.Ascertain and summarise the pertinent regulations and standards governingenvironmental quality, health and safety, protection of sensitive areas, protection ofendangered species, siting, land use control, etc., at intemational, national, regionaland local levels. An Assessment of the present handling of the EA requirements andprocedures, as well as of the Govenmnent's capacity to handle these in the futureshould be included in this EA. Make use of the NEAP as part of this exercise.


Determination of the Potential Impacts of and Impacts onthe Proposed ProjectPotential impacts to be assessed include, but are not limited to:

(a) Project Location: possible resettlement of people; loss of forest land; loss ofAgricultural land (cropping and grazing); impact on flora and fauna; impact on historyand cultural sites; effects on water Resources outside and inside command area.

(b) Project Design: disruption of hydrology; drainage problems; design ofconstructions and other structures; crossings for people and animals.

(c) Construction Works: soil erosion; noise; traffic safety issues, construction spoils(disposal of); sanitary conditions and health risks associated with construction campand workers coming into area; social and cultural conflicts between imported workersand local people.

(d) Project Operation: pollution by agrochemicals; impacts on soils (waterlogging,salinization, etc.); changes in ground water levels and quality inside and outsidecommand area; changes in surface water quality and risks of eutrophication; incidenceof excreta and water-related diseases, sanitary risks from the landfill.

The scoping part of the EA will detemiine the exact list of impacts that should beinvestigated.

Anatysis of Alternatives to the Proposes ProjectDescribe altematives that were examined in the course of developing the proposedproject and identify other altematives which would achieve the same objectives. Theconcept of altematives extends to siting, design, technology selection, constructiontechniques and phasing, and operating and maintenance procedures. Comparealtematives in terms of potential environmental impacts; capital and operating costs;suitability under local conditions; and institutional, training, and monitoringrequirements. When describing the impacts, indicate which are irreversible orunavoidable and which can be mitigated. To the extent possible, quantify the costsand benefits of each alternative, incorporating the estimated costs of any associatedmitigating measures. Include the alternative of not constructing the project, in order todemonstrate environmental conditions without it.

The Consultants could refer to the DHV report which refers to the feasibility studiesfor the five cities include Assessment of alternative solutions.

Development ofManagement Ptan to Mitigate Negative ImpactsThis task will only be executed if the EA has identified significant harmful impacts ofthe proposed Project.

Recommend feasible and cost-effective measures to prevent or reduce significantnegative impacts to acceptable levels. Estimate the impacts and costs of these

Inception Report and Terms of Reference 1 19

measures, and of the institutional and training requirements to implement them.Consider compensation to affected partied for impacts which cannot be mitigated.Prepare a management plan including proposed work programs, budget estimates,schedules, staffing and training requirements, and other necessary support services toimplement the mitigating measures.

Identification of Institutional Needs to Implement Environmental AssessmentRecommendationsThis duty component is subject to a justified need of more monitoring plans andinstitutional building than those which will be implemented as part of the proposedProject.

Review the authority and capability of institutions at local, provincial/regional, andnational levels and recommend steps to strengthen or expand them so that themanagement and monitoring plans in the environmental Assessment can beimplemented. The recommendations may extend to new laws and regulations, newagencies or agency functions, intersectoral arrangements, management procedures andtraining, staffing, operation and maintenance training, budgeting and financialsupport.

Development of a Monitoring Plan.Prepare a detailed plan to monitor the implemnentation of mitigating measures and theimpacts of the project during construction and operation. The monitoring effortsshouldn't only cover biophysical elements, but also inhabitants and their sanitaryconditions. Include in the plan an estimate of capital and operating costs and adescription of other inputs (such as training and institutional strengthening) needed tocarry it out.

Assist in Inter-Agency Coordination and PubliciNGO Participation.DNA will lead coordination with other govenmmental agencies, donors, and otheraffected groups. The Consultant will assist DNA in this, include keeping records ofmeetings and other activities, communications, and comments and putting these attheir disposals.

6. ReportThe environmental Assessment report should be concise and limited to significantenvironmental issues. The main text should focus on findings, conclusions andrecommended actions, supported by summaries of the data collected and citations forany reference used in interpreting these data. Detailed or uninterpreted data are notappropriate in the main text and should be presented in appendices or a separatevolume. Unpublished documents used in the Assessment may not be readily availableand should also be assembled in an appendix. Organise the environmental Assessmentreport according to the outline below.

Executive Summary, Policy, Legal and Administrative Framework, Description of theProposed Project, Baseline Data, Significant Environmental Impact, Analysis of


Alternatives, Mitigation Management Pian, Environmental Management andTraining, Environmental Monitoring Plan. Appendices: List of EnvironmentalAssessment Preparers References Record of Interagency/Forum/ConsultationMeetings

(This is the format suggested in OD 4.01, Annex B; the TOR may specify a differentone to satisfy national agency requirements as long as the topics required in theBank's directive are covered.)

7. Consulting Team and Time BudgetMembers of the team should consist of people with the following specialisation's:

- one EA preparation team leader with general expertise in EA- one environment economist- one social scientist- one water Resources specialist with general expertise in waterand sanitation projects

The tentative time budget for each team member are as follows:

Team member Number of daysTeam Leader/EA expert 50Environmental Economist 20Social Scientist 30Water Resources and WSS Specialist 30

, Total 130

The use of local/Southem African consultants is highly recommended.

8. ScheduleThe EA preparation is scheduled to take place as follows:

Tasks/Month (199e) February March April May JuneSceping xxxxxxxxxFirst Progress report x xImpact & analysis of alter. xxxxxxxxx x_Second Progr. Report _ xxxxRecommendations xxx __Public consultation xxx xxxDraft Final EA report xxxxxxxReview: GoM/AFTES x xxxFinal EA report xxxxxxx


9. Other InformationIt is important that this EA takes into consideration all relevant information onenvironmental issues in Mozambique, as well as the specific planning andimplementation activities dealing with environmental aspects of this Project. Hence,the consultants attention should be directed to i.a. the following data sources, projectbackground reports and studies, relevant publications, and other items:

- Environmental Assessment Sourcebook and all relatedregulatory texts published by the World Bank group

- AFTES <Environmental Assessment and Review inSub-Saharan Africa>>, 1995

- AFTES <Managing the Environment Locally in Sub-SaharanAfrica (MELISSA))), 1995

- AFTES <Integrated Coastal Zone Management>>, 1995- Mozambique CESP, 1994- Programa Nactional de Gest&o Nacional do Meio Ambiente,(NEAP) Maio 1994

- Coastal Zone Management Projects

Some relevant project specific plans, descriptions and Terms of Reference are asfollows:

- Strengthening of Management of Shared Water Resources,Draft TOR January 9, 1996

- Business Development Plan for ARA-Sul, Draft TOR, January 9, 1996- Feasibility Study for Corumana Dam Complementary Works,

Draft TOR, January 9, 1996- Joint Incomati Study - Proposals for Revised Study, DNA- Implementation of Performance Contracts in the Water

Sector: Terms of Reference for the Counterpart Team- Beneficiaries Assessment Study. Terms of Reference, January 1996.

Economic Analysis 123

APPENDIX B: ECONOMIC ANALYSIS

With the wide definition of "environment" in the Bank OD 4.01, a wide definition ofenvironmental economics is also chosen in assessing the urban water supply project.

B1. Introduction: A Social Welfare Function for Mozambique?

The political goals and legislative system of the country are supposed to represent thesocial preference function or what is considered to be the accepted social justice in thecountry. Ideally, these should represent a complete and consistent basis for formulationof a development strategy. In practice, there are big gaps and inconsistencies in existinginstitutional frameworks, lack of coordination, incomplete information causing moralhazard problems and inferior and inconsistent strategies. The intemational societythrough international and donor organizations is also imposing their goals of efficiency,social justice and sustainability on poorer countries.

In order to carry out an environmental economic analysis of urban water supplyin Mozambique, we have to try to apply economic theory to an economy wheretransactions costs may be high, information problems are tremendous, poverty is anurgent issue, institutional structures are under complete revision, and the people havelost hope in the government's ability to solve its problems. No doubt, this is a thornyand narrow, if at all passable, path. Concepts in economic theory, like market failure,externality, policy failure, etc. are linked to an ideal world without transactions costs(and with perfect information) as a baseline for comparison. In a second-best world theconclusions arrived at in a first-best world do not necessarily hold. In a "third-best"world, like Mozambique, the situation is even worse. Navigation according to rulesfrom the first-best world do not necessarily lead towards improvements becauseimportant issues are neglected. Still, this is attempted due to the lack of better principlesto follow.

The principles we follow are:

* Water should be provided according to needs. The National Water Policy (1995)states that provision of basic water supply needs to low income groups in peri-urbanand rural areas are prime (principal) objectives.

* Water should be paid by the users according to its economic value or the cost ofproviding it (Ibid.).

* Aim for cost recovery to develop a sustainable water sector.

* Matching of water supply (quantities and qualities) with the demand for water(ability and willingness to pay for water).

* Polluter pays principle (wastewater disposal).

124 Economic Analysis

These principles may in some cases contradict each other, in particular the needsmay be higher for the poorest segmnents than their actual ability to pay for water. Costrecovery may thus only be achieved in several stages if a positive economic growth,also benefiting the poor, can be achieved. Grant money will be necessary to facilitatethis process.

The objective of the National Water Policy is to increase the coverage in urbanand peri-urban areas to 50-80% of the population by the year 2002. The target forMaputo is 60%, for Pemba 80%, while it is 50% for Beira, Quelirhane and Nampula.Tariff structures should be revised such that by year 2000 they should cover operation,maintenance and 50% of the depreciation costs. Full cost recovery should be achievedbefore 2003 (Ibid.).

B2. Pricing of Water

A new tariff system has recently (February 1996) been introduced in Mozambique. Thisis an important step in the direction of establishing a system to support a commerciallyviable water sector (WB 1996). We will suggest here some general principles for thepricing of water. These principles could be used in relation to the further developmentof a tariff system as long.as pricing cannot be left to market forces alone.

If water is abundant, the correct pricing of water would be the cost of cleaningand distributing it. If water is scarce, pricing is more tricky. One may have to trade offbetween the goals of satisfying current basic needs vs. economic growth (includingfuture basic needs). In two of the towns, Maputo and Beira, there were emergingconflicting interests in use of water, either for irrigation or for urban consumption. Inthe towns there may also be conflicts between using water for commercial purposes andfor household consumption.

Raw water from the Pequenos Libombos dam near Maputo is currently priced atonly Mt 4/m3 (USD 0.00033/m3). This is the price paid both for urban consumption andfor irrigation. This price is likely to be increased to Mt 70/m3 (USD 0.0058/m3) in thenear future. This can be compared to the estimated average net value added per m3 forirrigation water of USD 0.046/n3 (DHV 1994). If this estimate is still valid, and wemake the simplifying assumption that marginal cost is equal to average cost (linearprofit function), the opportunity cost of water is almost nine times as high as thesuggested new price for raw water. ARA-Sul is responsible for the overall waterresource management and should get an income to cover its costs as sale of water is theprincipal source of income.

Water for urban consumption is now given highest priority although the damwas originally designed to provide water for irrigation. Currently there is sufficientwater both for urban consumption and irrigation but with the expected increases inurban as well as irrigation demands there may be negative effects on agriculturalproduction from expanding urban consumption. These losses should be valuedaccording to the opportunity cost of scarce water. This requires knowledge about futureprices and relevant technologies and management systems. The marginal increase in the


profit in farming due to a marginal increase in the use of water for irrigation wouldrepresent this price. As future prices etc. are unknown we can only make a roughestimation of expected scarcity values based on current prices.

A general principle which could be derived from this is that the price of watershould be set higher at times of scarcity and this scarcity price should be faced both byurban and irrigation water consumers. This would result in seasonal price variation andhigher prices in drought years. Whether this is administratively feasible has to beconsidered. The relative price variation would be much higher for irrigation water thanfor urban consumption, however, as much of the price paid by urban consumers is dueto the cost of cleaning and distributing water to the urban areas. For comparison withthe current (Mt 4/m3) and future (Mt 70/m3) prices of raw water, the urban consumerspay Mt700-4,000/m3 , the lowest price being for "basic need" consumption and thehighest price-for industries. Scarcity pricing of irrigation water would facilitate locationof irrigation projects where water is more abundant if conditions otherwise are similar.Irrigation requires high initial investments, however, and careful land use planning isnecessary, taking into account future water supply and demand before land is allocatedfor irrigation.

-B3. Cost Recovery Problems

The water companies in each town have severe cost recovery problems. The recoveryrates from the consumers were typically low. Particularly state departments often fail topay their water bills. There were also limited possibilities for reducing the costs as avery large share of the costs were for electricity. For example, in Pemba the costs/m3

were estimnated to be Mt 6,000 (USD 0.50) while the income/m3 was only Mt 700-900(USD 0.058-0.075) (Water Deparment in Pemba, 1996). So when with the existing lowprices the recovery rates are low, how would they be when prices are raised to try toincorporate coverage of the real costs, and of the additional costs required to upgradeand improve the systems as well? Management problems within the water companiesand coordination problems among the various state institutions are only going to add tothis problem of creating a sustainable system for water supply.

Poor services were frequently given as reasons for not paying the water bills.The poor services were primarily unreliable supplies of water. Water was oftendistributed only a few hours a day. In other cases it was distributed only a couple ofdays per week. This imposed storage problems and costs on the consumers and was animportant reason for the development of secondary markets.

Seventy percent of the employees in the Maputo area earn the minimum wage ofMt 228,000 per month. This does not even cover the costs of 40 kg of maize or 50 kg ofrice. With the addition of house rent, work travels and other expenses, the minimumwage will not cover the basic costs of living. What would be the willingness and abilityto pay for water under such circumstances?

If the aimAis cost recovery, there must be a possible match between thewillingness or ability to pay and the actual cost of providing the water. If we assume a


water demand for decent living of 15 lites/capita/day and a household size of sixpersons, the total monthly demand for water would be 2.7m3. If the cost of water wouldbe USD 0.25/m3 (Mt 3,000), the monthly expenditure on water would be Mt 8,100 or3.6% of the minimum monthly wage (assuming only one employed member of thehousehold). If the cost of water is USD 0.5/m3 (Mt 6,000), the monthly expenditurewould be Mt 18,200 or 7.1% of the minimum monthly wage.

If the same household had a yard tap and consumed 70 litres/capitalday, themonthly water consumption would represent 16.6 or 33.2% of the monthly minimumwage, given the same prices as used above. A yard connection may even be tooexpensive for a technician working in DNA and having a monthly salary of Mt 350,000as he would have to spend 10.8 or 21.6% of his salary to pay for the water demand ofhis family. House connections would simply be prohibitive for households onminimum wages, if they were not able to sell water to neighbours and others.

From this perspective it is clear that the DHV consultants who designed the planhave aimed for a too high standard (75% having house or yard connections by the year2017). They did not have income distribution data at the time they did the study (DHV1994). It is very unlikely that the large share they proposed will have the ability to payfor such a high standard water supply system. It seems much more realistic to providepublic standposts for the large majority of people, which implies lower costs per m3 ofwater and considerably lower rates of water consumption per consumer.

Another question is whether an element of cross subsidies incorporated in thetariff system could help to increase the coverage of distribution and recovery of costs. Ifthe relatively rich urban population, who get house connections, have to pay anadditional tax on their water supply, this tax could be used to provide subsidized waterfor the poor. Yet the share of non-poor households is very low on average (less than10%). However, this points in direction of increasing the price of water for houseconnections, to a level at least as high as that for commercial users. The current systemwith progressive water prices is having a similar effect.

The current tariffs are fairly low although they have just been raised. The highinflation rate, if it is going to last, makes it necessary to have frequent index regulationof tariffs using the loan currency (USD) as the base.

B4. Water Quality and Pricing

Poor water quality seemed to be perceived as being less of a problem among consumersthan it really was. Lack of knowledge about waterbome diseases was the reason forthis. This was therefore not an important reason for non-payment. Distribution ofunhealthy water may also be seen as an externality causing human suffering, imposingcosts on the health service system, and loss of profits in productive sectors. The price ofunhealthy and dirty water should therefore have been lower than the price of clean andsafe water. In this case one could view the water company distributing unhealthy wateras the polluter imposing damages on others. These damages also represent extemalitieswhich ideally should be internalized. Differentiation of water prices according to water


quality would therefore be appropriate from a theoretical point of view. The question is,however, if this leads to improvements in a third best world.

Agrochemical pollution of water has been identified as a possible problem in theMaputo area. Large irrigated areas are found upstream in the Umbeluzi basin,particularly in Swaziland. Water quality considerations from a human consumptionperspective should be included in the international agreements and monitoring system tocontrol the use of agrochemicals to keep levels of toxic elements below safe standardlevels. It is not known what the effects are on human health and aquatic life from this orwhether a monitoring and management system can succeed in reducing the problem.

B5. Free-Riding and Moral Hazard Problems

Illegal connections were common in several of the towns studied and causedunaccounted for water (UFW) losses. Total UFW losses have been estimated frombetween 30-40%/O in Maputo to 50-60% in Quelimane. A part of the repair program is torepair leakages and illegal connections. The danger is that these may reappear soonafter the repair has been carried out. A permanent monitoring system and a system withfinss etc. may be necessary to handle this problem. Establishment of water taps atregular frequent intervals along the transmission mains and other parts of thedistribution system may also reduce the problem.

Damage of water meters was common. Often a water meter lasted for only aweek before it was put out of function. This was due to the current incentive structurewhere there were no fines or additional costs imposed on those who used these taps.Rather they could increase their consumption without having to pay for it because billedwater consumption tended to be set low at these places. It is part of the rehabilitationand distribution network improvement to repair, replace and introduce new watermeters. The costs of doing this may not be recovered and defended unless the incentivesystem at distribution points is changed. Those in charge of public taps should be heldresponsible for repair or replacement of damaged water meters and a higher price shouldhave to be paid for water from taps where the meters are out of function.

House conmections with broken meters are currently in many cases functioninglike illegal conmections because large amounts of water may be drawn without payingmore than the normal low flat fee. Having a house connection may therefore be aprofitable business because unpaid for water may be resold at a very high price to lessfortunate neighbours (see also Ojanpera, 1993). This may perhaps also explain thatthere currently is a high demand for more house connections although the costs may notbe justified from a society perspective. It is therefore hard to justify the large plannedexpansion of house connections in the World Bank investment program. We also returnto this in relation to the discussion of sanitation.


B6. The Secondary Markets for Water

We found considerable variation in the extent and functioning of secondary markets forwater. In periods of scarcity, the price of water in secondary markets could be as highas up to Mt 50,000/m3 while the official prices has just been increased to Mt 700-4,500/m3. One could say that the prices found in the secondary markets represent thetrue scarcity value of water, however severe poverty could ration poor households out ofthe market and cause life-threatening suffering. The planned project may result in alarger and more reliable supply of water and lower prices in secondary markets, if theycannot be fully removed.

The planned beneficiary assessment will carry out a detailed study of this mnarketas well. As many types of solutions have been tried in different towns and also withintowns, it is likely that this study will result in much clearer recommendations as to howthe distribution system should be set up. One option we did not see but which we thinkshould be considered, is that the public standposts rather than ending in a tap, shouldend in a tank. This would reduce the storage problems which impose high costs on thebeneficiaries, particularly the poorer who cannot afford to buy tanks and who have tobuy the water at a much higher price from the vendors.

The beneficiary assessment is planned for only two of the towns. Werecommend that the beneficiary assessment is developed to a participatory distributionsystem development project to get a good match between supply and demand.

B7. Impact on Health

Improved supply of clean water will give positive health effects (if sanitary conditionsare not worsened). Lack of knowledge about the relationship between water quality andhealth among the users may cause larger health problems because sufficientprecautionary measures are not taken. This may cause people to underestimate thevalue of clean water or that they believe the water they get is of better (less dangerous)quality than it really is. This points to one of the limitations of willingness to paystudies with regard to water quality. Even with this knowledge people may fail to takethe necessary preventive measures, e.g. to boil their drinking water because this is veryexpensive. It would be helpful to know how common this practice is and how it relatesto the income level of people, their knowledge about water quality, educational level,and access to and provision of public information about water quality.

The health effects include the pain suffered by those getting sick and theirrelatives, additional health services required (drugs, nursing, doctor consultation, andhospitalization), productivity losses in days lost for work, and days worked at lowerproductivity (Convery 1995). Loss of lives may also occur. In our case we expect areduction of these costs from improving the water supply and quality of water (ifsanitary problems are controlled). It is difficult to relate general health statistics directlyto water supply, however. Water quality and quantity are not the single most imnportantelements in direct transmission of e.g. diarrhea and dysentry (Listorti 1990).


Furthermore, there is likely to be considerable underreporting in the healthstatistics. Ministry of Health (1996) reports 80 deaths caused by diarrhea and dysentryin 1995 in Maputo. With a population of 1.4 million, that is only 0.06 deaths per 1000inhabitants while a study in Quelimane and Beira in 1985-86 found 15 deaths in Beiraand 4.1 in Quelimane per 1000 inhabitants which were caused by diarrhea (Feechemand Jamison 1991). The large difference between Beira and Quelimane may have to dowith water quality but we do not know for sure. At this time the water in Quelimaneappeared to be of poorer quality than in Beira while water samples taken in 1991 and1992 show large variation from one year to the other in Quelimane in samples takenfrom wells (8.6% infected in 1991 against 44.4% infected in 1992). Calculation of costsand benfits on this basis would therefore be pure speculation.

For a proper analysis household data including health records, water supplyconditions, behaviour in relation to water use, and other conditions affecting the healthof people, are needed. It may then be possible to estimate the effects of water supply onthe health of people (frequency of various diseases e.g. in days sickness/year) if otherpossible causes also can be registered and included in the analysis (including e.g.food/nutritional data). If households also are interviewed about the income and costeffects of being sick, we may put economic value on some of the health effects. It hasnot been possible to do this with the limited time available for this study. It should beconsidered whether it is appropriate to include this approach in the beneficiaryassessment.

B8. Distribution and Sanitation

Sanitation seems to be the most significant negative issue in relation to increased urbanwater supply in Mozambique. Sanitation is not part of the current project butimplementation of the WB project as planned will result in serious negativeenvironmental effects if a solution to the increased sanitary problems are not found. Analternative plan has thus been sketched. We propose that extensions in the distributionsystem should not take place for house connections untill the sanitation problem issolved. We thus suggest that funds are reallocated from house connections to publictaps/standposts. This will create less sanitary problems and water can be provided to alarger share of the urban population, particularly the poor living in peri-urban areas.This is supported by socio-economic studies of the urban populations which indicatethat as much as 70% of the population are ultra-poor, being unable to cover their basicneeds, more than 20% had incomes between one and two times the basic needsrequirements, and less than 10% were non-poor and had incomes above two times thebasic need level (Ministry of Planning and Finance 1994). This may not have changedmuch since the study was carried out in 1992/93.

The DHV proposed, and current WB project may thus have been planned with atoo high standard compared to the purchasing power of the majority of people. If theaim is cost recovery in the long run, the standard of supply should be adjusted down.Detailed analyses are given in Section B.14 for Beira and Quelimane as roughexamples. The Beneficiary Assessment will facilitate a more accurate analysis. Wehave tried to give an idea of the consequences of shifting from house connections to full


coverage-by public taps as an extreme alternative and what this implies in terms of totalwater demand and installation costs (not including all aspects related to distributionnetwork and increased water demand in Quelimane where population data are correctedupwards). An advantage with the alternative plan is that it will more than satisfy thecoverage target of the National Water Policy which is 50-80% by 2002. The WBproject will fail to meet this target.

Without detailed plans or analyses of the physical situation and health effectsfrom increased water supply on the sanitary situation, it has not been possible toquantify the health costs for the different alternatives.

We may conclude and recommend that further extension of house connectionsshould only take place if those getting these pay the full costs of supplying the waterand the increased sanitation costs imposed on their neighbourhoods. Inclusion of houseconnections in the present project should only be accepted if a solution to the sanitaryproblem is actually found. We recommend that the program is changed to concentrateon extending distribution through public taps.

B9. Induced Development Effects

There are scarce funds for development investments in Mozambique. Therefore allprojects should ideally be judged and compared to the best alternative projects. Thereare large information gaps preventing proper comparison, however. Projects may haveboth direct and indirect (induced) effects. Induced effects may be hard to predict. Someof them are short-term, others are long-term. Detailed knowledge of the structure of theeconomies and data to develop SAM/CGE models are needed to make quantifications ofthese effects. Without this information it is only possible to make some generalassessments based on similar studies carried out elsewhere. There may be short termpositive effects from the planned project on urban consumers. Both expenditure onwater, if bought at very high prices in the secondary market, and time spent to get thewater, may be reduced. There will thus be some clear redistribution effects locally.Others, who have managed to get water at a very low price up to now, may have to paymuch more to get water after the rehabilitation.

There may also be some more long-term effects on migration between urban andrural areas. Water supply, however important, is only one of many factors influencingpeople's decisions about migration and where to settle. The war forced about 1/3 of therural population to move to the towns. If there are relatively better employment or otherincome-gaining opportunities in an area, people are likely to go there if they have theknowledge and resources to do so. Migration and resettlement is costly. People maythus be trapped in places from where they would like to escape. Urban-rural migrationis particularly dear and difficult as there are few immediate income or employmentopportunities in the rural areas. It takes time to reestablish farms.

A gradual expansion of a market oriented and more advanced agriculture fromthe towns and outwards seems the most appropriate approach in Mozambique.Provision of infrastructure and water supply where needed in peri-urban or near urban

Econornic Analysis 131

rural areas, together with the development of factor and output markets, extensionservice, etc. may gradually provide increasing income and employment opportunitieswhich may facilitate the movement of poor unemployed people out of city centres ifthey have no other options. A modernized agricultural sector has been shown to havestrong forward and backward linkages and provides incomes to the majority of poor inmost developing countries. Provision of water supply should therefore be seen in thiscontext to stimulate agricultural growth and thus economic development in the country.Investments in different sectors have to be balanced to achieve this.

B10. Urban Water Consumption vs. Water for Irrigation

Agriculture represents the largest sector of the Mozambiquan economy providing 40%of GDP and export value in 1991 after a decline in this sector due to the war (MOPH1994). In 1994/95 the country produced only 67% of its food requirement causing theneed for importing large amounts of food (Ohlsson 1995). In 1990 the total importvalue was almost six times as large as the total export value and the food import valuealone was more than double the total export value. The urgent need to increase foodproduction is therefore evident.

Mozambique has favourable conditions for agricultural development and a hugeunderutilized irrigation potential, particularly in the Zambezi river basin. Currentlyirrigated areas are rehabilitated and there is a National Irrigation Development MasterPlan indicating expansion of irrigated areas in the years to come. Water demands forirrigation are high, estimated to be more than twenty times the urban water demand in1992 (MOPH 1992). These demands could therefore easily come in conflict and thereis a clear need for integrated water resource management to strike a balance betweenirrigation and urban demands. As population grows, irrigated areas may have to bereduced in some places. Development of rainfed agriculture and irrigated agriculture inareas with more abundant supply of water, like in the Zambezi river basin, shouldtherefore be prioritized. Poor infrastructure is currently constraining transport ofagricultural produce from the north to the south in the country, however. The irrigatedareas in Umbeluzi, Incomati and Limpopo river basins therefore have a favourableposition in relation to the Maputo area.

Models for integrated resource managemnent should be developed to support theplanning process. Currently the irrigation potential developed in this area is far fromfully utilized. This is partly due to the war and partly due to the lack of tradition for thistype of agriculture among the rural population. PRORURAL, an Italian sponsoredagricultural development project, is providing irrigation for 300 ha in Umbeluzi but thefarmers have not yet reached break-even yields for full cost recovery. This is forsmallholders, however. Commercial farmers with knowledge and access to higher leveltechnology may be able to make high profits. Even export to South Africa could bepossible because the season is longer for certain products than in South Africa.

In the Maputo and Beira areas there will be significant competition for water forurban consumption vs for irrigation. Restrictions have already been put on the irrigated


areas in the Umbeluzi basin and in Beira (DHV 1994). The Corumana Dam wasestablished primarily to facilitate irrigation development. However, it is now stated thaturban consumption needs have priority over water for irrigation. The DHV consultantscarried out an economic evaluation of different water supply scenarios in the Maputoarea. They found that irrigation components (Movane area) contributed to increasedeconomic internal rates of retum. Detailed analyses have also been made in theNational Irrigation Development Master Plan. Further analysis is therefore not pursuedhere.

Bl. Population Growth Projections

The population estimates and projections which served as the basis for planning madeby DHV (1994) were very uncertain. There were no reliable statistics on the actualrefugee populations or the percentage that would return to their original villages. Theconsultant thus imposed the assumption that from 3% (Pemba) to 25% (Nampula andQuelimane) of the populations in these towns in 1992 would leave for their areas oforigin. Our information obtained during visits to these towns indicated that thisoutmigration has not taken place. This implies that actual populations in some of thetowns are likely to be considerably higher than the projections made by the consultantsin 1994. We were told that the population in Nampula was likely to be above 380,000in 1996 while it was projected to be only 278,000 according the DHV consultants. InNampula we found that there was some temporary outmigration during the rainy season.

B12. Ability or Willingness to Pay for Water

Demand for water would typically depend on the price of water and the income of theperson buying. Rich households would typically demand higher quantities of water butthe share of their income used on water may be lower than for poor households as watermay be seen a necessity with income elasticity below one. Ojanpera (1993) carried outa study of affordability and willingness to pay for water services in the urban and semi-urban areas of Beira. He found that poor households stated to be willing to pay up to4% of their income for water supplied from public standposts. Richer householdsindicated that they were willing to pay 0.1-1% of their income for water. Average WTPfor water from public standposts was Mt 1,510/month and approximately Mt8,000/month for house connections.

Ojanpera also estimated actual quantities of water used by households but thedata were presented only as average consumption per household or per capita per dayfor five different bairros in Beira. The averages per bairro varied from 21 to 31litres/capita/day with an overall average of 26 litres/capita/day (Ojanpera 1993, Table 6)but these quantities are claimed to be per household in the text (p.13). We assume thefigures in the table are correct as they correspond quite well with the quantity estimatesused by the DHV consultants for their water demand calculations. They have used 20-30 litres/capita/day for public taps, 60-80 litres/capita/day for yard connections, and 90-130 litres/capita/day for house connections. If we relate these figures to the WTPestimates of Ojanpera, we find the average WTP/m3 to be Mt 296/m3 (USD 0.057/m3 )for public taps (assuming use of 170 litres/household/day) and Mt 423/m3 (USD


0.081/m3) for house connections (assuming use of 630 litres/household/day). Thisindicates that the WTP/m3 may be higher among people with house connections but careshould be undertaken when interpreting this. Current WTP/m 3 estimates may reflect thecurrent favourable situation of people with house connections as they often have afavourable position as vendors and having a house connection can be a profitablebusiness. Their WTP may therefore reflect this profitability rather than their WTP fortheir own consumption needs.

Stated WTP may also reflect what people have been used to paying rather thanthe maximum they would be willing to pay in a scarcity situation. Prices in thesecondary market may thus better reflect real WTP. With prices as high as MtlO,000-50,000/m3 (USD 0.83-4.20) in these markets, there should be good opportunities forimproving the cost recovery of the project. This issue requires careful attention in theBeneficiary Assessment. Attempts should be made at estimating income and priceelasticities for water to facilitate the development of a more "optimal" water distributionsystem. The fact that people with house connections are both sellers and consumers ofwater needs to be corrected for. Households thus need to be treated both as productionand consumption units (sale of water is a production activity). It may be difficult if notimpossible to get reliable data from the secondary market as this activity is illegal.

Estimation of dernand for water as a function of price and income was notattempted by 0janpera (1993) and the data set was not included in the report.

B13. Overall Water Supply and Demand Considerations

Table B.1:Distribution of Connection Types, Service Ratios, Water Demand and ConnectionCosts for the DHV (1994) Plan, the NWRMDP as proposed and Alternative Planfor Beira (Year 2002)

Population Served ('000)DHV Plan NWRINDP Alternative

House Connections 94 75 60Yard Connections 90 42 99Public Taps 109 66 425Service Ratio 50 31 100Water Demand, m3/d 20,305 12,101 24,759Connection Costs, USD 1,000 2,950 1,170 2,259

Demand or consumption of water will, besides being deternined by the population size,also be influenced by the distribution system (type of connections or taps and coverage).In the plan developed by the DHV consultants the aim was e.g. in Beira to increase thecoverage with house connections to 35%, and to 40% for yard connections, while therest would have access to public taps by the year 2017. We have developed some


altemative scenarios in the following. Our calculations are rough examples for Beiraand Quelimane.

In the case of Beira we illustrate the effect of shifting the plan from expandinghouse connections to only expanding public taps. We use income/expenditure estimatesto classify the projected populations in three classes according to their income (poverty)level based on a household survey from 1992. We therefore assume that that incomelevel and distribution of income is constant as we have no better altemative assumptionor knowledge. Our analysis indicates that there may be a misfit between the actualincome distribution and the planned standard of water supply by the DHV consultantsand the Bank project. The income profile data indicate that a small percentage of theurban population has an income level high enough to afford to have house connections.It is possible that the share of non-poor will increase with the new economic policy butwe do not have any recent data which confimns that. A summary of the distribution ofhouse connections, yard connections and public taps for the DHV Plan, the Bankproject, and our alternative plan, the resulting water demands, service ratios and roughconnection cost estimates are given in Table B.1.

Table B.2:Distribution of Connection Types, Service Ratios, Water Demand and ConnectionCosts with two population estimates for Quelimane (Year 2002)

Population Served ('000)DHV NWRUDP Alt. 1: Alt. 2:Plan Low Pop'n High Pop'n

House Connections 14 20 6 6Yard Connections 23 20 40 62Public Taps 28 9 134 167Service Ratio, Low Pop'n 35 31 100 -

Service Ratio, High Pop'n 27 24 77 100Water Demand, m3/d 3,696 3,417 6,492 8,599Connection Costs, 927 1,000 1,830 2,511USD 1,000

For Quelimane we have included alternative population projections to thosemade by the DHV consultants. They assumed that a large share (24%) of the estimatedpopulation in 1992 would migrate out but our information indicated that this has notbeen taking place. This affects the real service ratios which we have calculated for theurban and semi-urban populations together. Then we have suggested an alternative planwithout further development of house connections but with expansion of public taps toincrease the service ratio to 100% in year 2002 for the two alternative populationprojections. These two alternatives result in higher total water demands and investmentcosts for expansion of connections.

For simplicity we have assumed that the non-poor and poor can be provided withyard connections while the ultra-poor get public taps. The beneficiary assessment will


give better indications. A summary is given in Table B.2. We see from the table thatthe DHV Plan will provide water for 35% of the population by year 2002 with its ownlow population estimate but to only 27% with our revised population estimate. TheBank project reaches even fewer households, 31 and 24% for the two populationprojections, and with an even higher share of house connections than the DHV Plan.Our altemative plans then follow for the two population projections, giving much higherservice ratios but also higher water demands and connection costs.

B14. Recommendations

* Opportunity cost pricing of water. Index regulation of water tariffs.

* Relate service standards to purchasing power ofpeople

* Improvement of incentive structure at distribution points before installation of newwater meters.

* Assessment of health effects as part of the beneficiary assessment.

* Participatory distribution system development. Involve local people in selectinglocation points for public taps.

* No further expansion of house connections untill the sanitary problems are solvedor the use of the 'polluter pays principle" is institutionlised in relation to urbanwater consumption.

It is estimated that people with house connections use four to five times as muchwater as people with access to public taps only (Ibid.). One may say that this representsa negative extemality if the one causing it is not considering or paying for the costs he isimposing on others. This externality could be internalized by imposing a tax on thepolluter. This tax should be high enough to pay for the damages made and/or for thecosts of constructing the necessary sanitary facilities to mitigate the damages made.


i

Team Members, Work Schedule and Division of Tasks 137

APPENDIX C:TEAM MEMBERS, WORK SCHEDULE AND DIVISION OF TASKS

Cl. EA Team Members

The World Bank engaged The Centre for Intemational Environment and DevelopmentStudies (Noragric) at the University of Agriculture, As, Norway to carry out the EAassignment. Noragric assigned the following team to carry out the work:

Ame Dahlen M.Sc Agric. AD-Consult A.S. Team LeaderJohn A. Boyle Ph.D., P.Eng. Private Consultant EIA SpecialistHans E. Magnussen B.Sc. Civ. Eng. Interconsult WSS Spec./Hydrol.Stein T. Holden Dr. Scient. dev. econ. Noragric Environ. EconomistAntonio E.L. Couto Biologist Austral SARL Social Scientist

In agreement with Noragric, Austral SARL assigned another qualified scientistto cover part of the assigned tasks for the social scientist, Mr. Roland Brouwer, Ph.D.,Agric./Env. The team also benefited from the expertise of Sra. Celia Meneses ofAustral SARL regarding legal and institutional aspects of water supply andenvirownental assessment in Mozambique. In total, 138 persondays of effort weredevoted to the study.

C2. Work Schedule

The schedule for carrying out the environmental assessment was outlined in the studyTOR and revised in Maputo through discussion with the Bank's task manager. Theschedule in 1996 was:

EA scoping and Inception Report 19 February - t MarchField work, Mozambique 26 February - 16 MarchDraft report preparation, Maputo 18-30 MarchDraft report preparation, Norway 15 April - 5 MayDraft report presentation, Maputo 9-10 MayReview, GoM and World Bank 10-31 MayFinal report preparation 3-8 June

The EA scoping and preparation of the Inception Report were carried out by A.Dahlen, Team Leader, and J. Boyle, EIA Specialist.

The field work included a one day visit to each of the five cities, watercompanies, water supply installation sites and meetings with local authorities. A list ofthe people and organisations consulted is included in Appendix D. The field survey tothe central and northern cities of Beira, Quelimane, Nampula and Pemba wasundertaken using a chartered aircraft. A. Dahlen, H. Magnussen, S. Holden and R.Brouwer participated in this survey, accompanied by Eng. Bento Mualoja from DAS ofDNA. All relevant installations were visited and inspected on the ground. Existing and

138 Team Members, Work Schedule and Division of Tasks

proposed water intake and treatment sites were also examined from the air whereapplicable. The field team also examined the Corumana Dam on the Sabie River fromthe air.

C3. Division of Tasks

Task allocation among the team members more or less matched the tasks and scope ofwork outlined in the TOR and Inception Report with the professional background of thevarious members. The Team Leader, in addition to co-ordinating the work of the othermembers, was also responsible for financial arrangements and logistics. Contributionsof the various team members were used throughout the report. Preparation and editingof the report, based on the various team contributions and comments from GoM and theWorld Bank, was done by the Team Leader and the EIA Specialist.

C4. Public Display and Consultation

Through Noragric, the Team Leader was engaged by the Bank in the beginning of 1997to assist DNA in preparing public display and consultation of the report's findings,conclusions and recommendations. Initial discussions were held with DNA in Maputoin February 1997. The Team Leader prepared texts for display posters and a pamphletbased on the executive summary. Austral SARL assisted in translation work, technicalproduction of posters and local logistics. The display and public consultation/debatetook place in the five cities during March - April 1997, and Mr. Brouwer prepared thereport on the exercise in consultation with DNA (June 1997).

The final report with Appendix E was edited by the Team Leader in August 1997 andissued as 2nd edition.

People/Organizations Consulted 139

APPENDIX D: PEOPLE/ORGANIZATIONS CONSULTED

Maputo

Luis Elias National Director, DNA, MOPHManuel Alvarinho Policy Advisor, DNAChandra Pereira Technical Advisor, DNALeonardo S.T. Kranendunk Hydrology Advisor, DNABento Mualoja Engineer, DNAJaime Matsinhe Civil Engineerl, DAS, DNAVicente Macamo Sanitary Engineer, DAS, DNAFrancisco T.C. Mabjaia Senior Advisor to the Minister, MICOARogero Wamusse National Director, Natural Resources Management,

MICOADaniel Shier Legal Advisor, MICOAKim Hermind Advisor to the Minister, MICOA (PROL)Charlotte Allen Advisor, MICOA (PROL - INPF)Issufu Chutumia Director General, ARA-SulRute Mateus Head of Administration of Water, Pequenos Libompos

Dam, ARA-SulMiguel Alves Director General, Aguas de Maputo (AdM)Joaquim E. Pirej Director of Operations, AdMMaria dos Anjos Department of Environmental Hygiene, MISAUAnjela Femandes Head of Hygiene Laboratory, MISAUAndreas Garavini Agricultural Economist, PRORURALCustodio Boane Fish Biologist, Department of Biological Sciences, UEMAlfredo Santos LINK, Deputy Co-ordinator, NGO-Donor Working Group

Beira

Gilberto S. Waya Director, CABSimon Comissario Head of Administration, CABMariano Roia Head of Technical Division, CABJose Merlandane Head of Finance Department, CABAntonio Velho Water Commissioner, bairro ChipangaraIsaias Rafael Co-ordinator, Gabinete da Apoio ComunitarioLuis Caetano Technical Assistant Water, Acucareira de MocambiqueJose Dungusa Director, Construction and Urbanization, City CouncilAlberto Massinga Interim Director, SUTRAElias Nyambe Provincial Director of Workers Departrnent, Sofala

Province

Quelimane

Firliz Descanso Director, AdQSerafim J.D. Detrato Head of Technical Department, AdQRetrato Technician. AdQ

140 People/Organizations Consulted

Jose A. Ronda Technician, GTZ project, AdQAntonio Private standpost manager, bairro CoalaneAmerico Muianga Provincial Director of MOPH, Zambezia ProvinceMauricio Duarte Water Department, MOPH, ZambeziaLeonardo Chaube Water Department, MOPH, ZambeziaLuis Pedro Chandemba Head of Department of Urbanisation and Construction,

City CouncilRaul Branco Director, Health DepartmentJoaquim Jori Pedro Supervisor, Health DepartmentRogerio Henriques Head of Administration, Grupo Madal

Nampula

Julius Salim. Deputy Director, Finance, AdNRede Manual Chief, Human Resources, AdNEva Femandes Rafael Chief, Commercial Section, AdNGracinda Trinidade Cadeira Chief, Finance Department, AdNAlberto Certo Amado Chief, O&M Department, AdNLopes Mungueleze Hydromechanical technician, AdN

i Mario Luis Artur Chief of Water Supply Programme, Peri-urban areasichaca Abdul Baraca Director, Physical Planning, Municipality Council

President, Municipality CouncilLanfredo Romao Director, Urban Health ServicesNoacha Head of Human Resources Department, Urban Health

ServicesMiguel Massunda Junior Forestry technician, Provincial Service of Forests &

FaunaAlbino Funeli Amanyikanza Head of the secretariateManuel Amos Head of Provincial Department of Geography and

CadastroJulio Orlando Mario District Director of Agriculture & Fishing

Pemba

Vietorino Ferrao Director, AdPRufino Head, Technical Department, AdPAlfredo Standpost manager, bairro CariacoAfanso Paquete Provincial Director of Water, MOPH, Cabo Delgado

ProvinceMontero Jaime Faifa Provincial Director of Housing, MOPH, CD ProvinceJose Julio Andrade Director of Urban HealthJosina Community health workerPaulo Junior Head of Provincial Rural Water (estaleiro)Jose Henriques Head of Rural Water Systems, MOPH, Cabo DelgadoJoao Maria Severiano Deputy Director of Agriculture, Cabo DelgadoEusebio Joao Sitingui Deputy Director of Works Department, Cabo Delgado

People/Organizations Consulted 141

Donors and Embassies

Mette Masst Assistant Resident Representative, NORADMatti Kariainen Resident Representative, FINNIDAJarmo Kiuuttila First Secretary, Embassy of FinlandCor van Honk First Secretary, Embassy of the NetherlandsKees Metzlaan Consultant, Embassy of the NetherlandsUlla Andren Programme Co-ordinator, Natural Resources and

Environment, ASDI, Embassy of SweedenHenny Matos Programme Officer, Environment, UNDP

World Bank StaffConsultants

John Shepherd Task Manager, AF1EITorbjom Damhaug AFTESMartin Gambrill Rural Water SupplySarah Keener Beneficiary AssessmentRod de Vietter Enviromnent and Natural Resources Operations Officer,

Maputo Resident Mission

Public Display and Consultations- Summary Report 142

APPENDIX E: PUBLIC DISPLAY AND CONSULTATIONS - SUMMARY REPORT

Some time after the final draft of the EA Report was presented, the Bank and the NationalDirectorate of Water agreed to anrange public display and consultations on the findings, conclusionsand recommendations of the Report. The Team Leader was engaged through Noragric to assistDNA in the exercise. Locally, the company Austral was engaged for translations, technicalproduction of display posters, and logistic support. A book was made available to the public forwritten comments during the displays, and this received 36 entries.

Public displays and consultations/debates were arranged in the five cities of Maputo, Beira,Quelimane, Nampula and Pemba during March - April 1997. This summary report is based onobservations and written comments during the displays and public debates, which are contained in areport of 1st June 1997, prepared by Mr. Roland Brouwer of Austral, in consultation with DNA(DNA 1997).

In all the five cities the public display and hearing was welcomed as a good initiative. However thepublic debate attracted relatively few people, mostly persons involved with water affairs and publicservice. The opening display was anranged in Maputo, and here the reasons indicated for the limitedinterest by the general public were (as an example):

3 the location at the Civic Centre which is regarded as the home of administration and bureaucracy,a place earlier not easily accessible to the general public;

- the format of the display and the issues presented, which were found to be too technical and notsufficiently visual. More general issues on access to water would have been preferred to theemphasis on environmental issues; and

3 that the still "timid" civil society is not yet used to this form of participatory approaches.

The public meeting in Nampula, scheduled at the end of the display, was cancelled because of noparticipation from the general public. A possible reason was that the meeting was planned during aweekend. In most of the other cities, however, the debates were lively and reported to have raised anumber of important issues related to water sources, supply and sanitation. Main concemsconcentrated on i) the privatisation of water companies which may lead to not affordable watertariffs and reduced, instead of increased access to piped water, and ii) the seemingly lack of concernin the project for waste water systems and treatment.

The public display and consultation process received relatively wide national media coverage;television, radio and the press, with focus on NWDP and the findings of the EA.

The mentioned report on the public display and consultation indicates that much can be learnedfrom the process which may be useful for later, similar exercises. It is therefor recommended that anappraisal is made of the experiences from the public display and consultation. It is assumed thatDNA and the Bank consider relevant concerns raised by the public in the future planning andimplementation of NWDP.